Correlation Between Carlyle and OFS Credit
Can any of the company-specific risk be diversified away by investing in both Carlyle and OFS Credit 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 OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and OFS Credit Company,, you can compare the effects of market volatilities on Carlyle and OFS Credit 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 OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and OFS Credit.
Diversification Opportunities for Carlyle and OFS Credit
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlyle and OFS is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and OFS Credit Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit , 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 OFS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Credit , has no effect on the direction of Carlyle i.e., Carlyle and OFS Credit go up and down completely randomly.
Pair Corralation between Carlyle and OFS Credit
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 8.36 times more return on investment than OFS Credit. However, Carlyle is 8.36 times more volatile than OFS Credit Company,. It trades about 0.09 of its potential returns per unit of risk. OFS Credit Company, is currently generating about 0.23 per unit of risk. If you would invest 2,826 in Carlyle Group on August 31, 2024 and sell it today you would earn a total of 2,497 from holding Carlyle Group or generate 88.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 10.96% |
| Values | Daily Returns |
Carlyle Group vs. OFS Credit Company,
Performance |
| Timeline |
| Carlyle Group |
| OFS Credit , |
Carlyle and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and OFS Credit
The main advantage of trading using opposite Carlyle and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, OFS Credit 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 OFS Credit will offset losses from the drop in OFS Credit's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| OFS Credit vs. Prospect Capital | OFS Credit vs. State Street | OFS Credit vs. OFS Credit | OFS Credit vs. OFS Credit |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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