Correlation Between Carlyle and Metal Sky
Can any of the company-specific risk be diversified away by investing in both Carlyle and Metal Sky at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Carlyle and Metal Sky into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Metal Sky Star, you can compare the effects of market volatilities on Carlyle and Metal Sky and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Carlyle with a short position of Metal Sky. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Metal Sky.
Diversification Opportunities for Carlyle and Metal Sky
Very good diversification
The 3 months correlation between Carlyle and Metal is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Metal Sky Star in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metal Sky Star and Carlyle is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Carlyle Group are associated (or correlated) with Metal Sky. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metal Sky Star has no effect on the direction of Carlyle i.e., Carlyle and Metal Sky go up and down completely randomly.
Pair Corralation between Carlyle and Metal Sky
Allowing for the 90-day total investment horizon Carlyle is expected to generate 169.71 times less return on investment than Metal Sky. But when comparing it to its historical volatility, Carlyle Group is 67.74 times less risky than Metal Sky. It trades about 0.06 of its potential returns per unit of risk. Metal Sky Star is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Metal Sky Star on October 11, 2024 and sell it today you would lose (6.99) from holding Metal Sky Star or give up 58.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.17% |
| Values | Daily Returns |
Carlyle Group vs. Metal Sky Star
Performance |
| Timeline |
| Carlyle Group |
| Metal Sky Star |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Carlyle and Metal Sky Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Metal Sky
The main advantage of trading using opposite Carlyle and Metal Sky positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Metal Sky can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Metal Sky will offset losses from the drop in Metal Sky's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Metal Sky vs. Visa Class A | Metal Sky vs. Diamond Hill Investment | Metal Sky vs. Distoken Acquisition | Metal Sky vs. AllianceBernstein Holding LP |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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