Correlation Between Carlyle and TLGY Acquisition
Can any of the company-specific risk be diversified away by investing in both Carlyle and TLGY Acquisition 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 TLGY Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and TLGY Acquisition Corp, you can compare the effects of market volatilities on Carlyle and TLGY Acquisition 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 TLGY Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and TLGY Acquisition.
Diversification Opportunities for Carlyle and TLGY Acquisition
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Carlyle and TLGY is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and TLGY Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLGY Acquisition 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 TLGY Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLGY Acquisition Corp has no effect on the direction of Carlyle i.e., Carlyle and TLGY Acquisition go up and down completely randomly.
Pair Corralation between Carlyle and TLGY Acquisition
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 18.17 times more return on investment than TLGY Acquisition. However, Carlyle is 18.17 times more volatile than TLGY Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. TLGY Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest 4,501 in Carlyle Group on September 1, 2024 and sell it today you would earn a total of 822.00 from holding Carlyle Group or generate 18.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Carlyle Group vs. TLGY Acquisition Corp
Performance |
| Timeline |
| Carlyle Group |
| TLGY Acquisition Corp |
Carlyle and TLGY Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and TLGY Acquisition
The main advantage of trading using opposite Carlyle and TLGY Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, TLGY Acquisition 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 TLGY Acquisition will offset losses from the drop in TLGY Acquisition's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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