Correlation Between Carlyle and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Carlyle and Neuberger Berman 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 Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Neuberger Berman IMF, you can compare the effects of market volatilities on Carlyle and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Neuberger Berman.
Diversification Opportunities for Carlyle and Neuberger Berman
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlyle and Neuberger is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Neuberger Berman IMF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman IMF 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman IMF has no effect on the direction of Carlyle i.e., Carlyle and Neuberger Berman go up and down completely randomly.
Pair Corralation between Carlyle and Neuberger Berman
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 4.32 times more return on investment than Neuberger Berman. However, Carlyle is 4.32 times more volatile than Neuberger Berman IMF. It trades about 0.17 of its potential returns per unit of risk. Neuberger Berman IMF is currently generating about -0.13 per unit of risk. If you would invest 4,891 in Carlyle Group on August 24, 2024 and sell it today you would earn a total of 474.00 from holding Carlyle Group or generate 9.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Carlyle Group vs. Neuberger Berman IMF
Performance |
Timeline |
Carlyle Group |
Neuberger Berman IMF |
Carlyle and Neuberger Berman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Carlyle and Neuberger Berman
The main advantage of trading using opposite Carlyle and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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