Correlation Between Carlyle and China Lending
Can any of the company-specific risk be diversified away by investing in both Carlyle and China Lending 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 China Lending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and China Lending Corp, you can compare the effects of market volatilities on Carlyle and China Lending 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 China Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and China Lending.
Diversification Opportunities for Carlyle and China Lending
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlyle and China is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and China Lending Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Lending Corp 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 China Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Lending Corp has no effect on the direction of Carlyle i.e., Carlyle and China Lending go up and down completely randomly.
Pair Corralation between Carlyle and China Lending
If you would invest 5,057 in Carlyle Group on August 28, 2024 and sell it today you would earn a total of 382.00 from holding Carlyle Group or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Carlyle Group vs. China Lending Corp
Performance |
| Timeline |
| Carlyle Group |
| China Lending Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Carlyle and China Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and China Lending
The main advantage of trading using opposite Carlyle and China Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, China Lending 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 China Lending will offset losses from the drop in China Lending's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| China Lending vs. Qudian Inc | China Lending vs. X Financial Class | China Lending vs. FinVolution Group | China Lending vs. Senmiao Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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