Correlation Between Carlyle and Rand Capital
Can any of the company-specific risk be diversified away by investing in both Carlyle and Rand Capital 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 Rand Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Rand Capital Corp, you can compare the effects of market volatilities on Carlyle and Rand Capital 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 Rand Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Rand Capital.
Diversification Opportunities for Carlyle and Rand Capital
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlyle and Rand is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Rand Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rand Capital 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 Rand Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rand Capital Corp has no effect on the direction of Carlyle i.e., Carlyle and Rand Capital go up and down completely randomly.
Pair Corralation between Carlyle and Rand Capital
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 0.97 times more return on investment than Rand Capital. However, Carlyle Group is 1.03 times less risky than Rand Capital. It trades about 0.1 of its potential returns per unit of risk. Rand Capital Corp is currently generating about 0.07 per unit of risk. If you would invest 3,336 in Carlyle Group on August 24, 2024 and sell it today you would earn a total of 2,029 from holding Carlyle Group or generate 60.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.2% |
| Values | Daily Returns |
Carlyle Group vs. Rand Capital Corp
Performance |
| Timeline |
| Carlyle Group |
| Rand Capital Corp |
Carlyle and Rand Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Rand Capital
The main advantage of trading using opposite Carlyle and Rand Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Rand Capital 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 Rand Capital will offset losses from the drop in Rand Capital's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Rand Capital vs. Blackstone Gso Long | Rand Capital vs. First Trust Senior | Rand Capital vs. Eaton Vance Senior | Rand Capital vs. Princeton Capital |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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