Correlation Between Carlyle and 360 Finance
Can any of the company-specific risk be diversified away by investing in both Carlyle and 360 Finance 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 360 Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and 360 Finance, you can compare the effects of market volatilities on Carlyle and 360 Finance 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 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and 360 Finance.
Diversification Opportunities for Carlyle and 360 Finance
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carlyle and 360 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance 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 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of Carlyle i.e., Carlyle and 360 Finance go up and down completely randomly.
Pair Corralation between Carlyle and 360 Finance
Allowing for the 90-day total investment horizon Carlyle is expected to generate 1.21 times less return on investment than 360 Finance. But when comparing it to its historical volatility, Carlyle Group is 1.58 times less risky than 360 Finance. It trades about 0.22 of its potential returns per unit of risk. 360 Finance is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,981 in 360 Finance on August 31, 2024 and sell it today you would earn a total of 807.00 from holding 360 Finance or generate 27.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. 360 Finance
Performance |
| Timeline |
| Carlyle Group |
| 360 Finance |
Carlyle and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and 360 Finance
The main advantage of trading using opposite Carlyle and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| 360 Finance vs. Joint Stock | 360 Finance vs. ACG Metals Limited | 360 Finance vs. Eldorado Gold Corp | 360 Finance vs. Keurig Dr Pepper |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |