Correlation Between Carlyle Secured and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Associated 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 Secured and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Secured Lending and Associated Capital Group, you can compare the effects of market volatilities on Carlyle Secured and Associated 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 Secured with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Associated Capital.
Diversification Opportunities for Carlyle Secured and Associated Capital
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and Associated is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and Carlyle Secured 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 Secured Lending are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Associated Capital go up and down completely randomly.
Pair Corralation between Carlyle Secured and Associated Capital
Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Associated Capital. But the stock apears to be less risky and, when comparing its historical volatility, Carlyle Secured Lending is 1.18 times less risky than Associated Capital. The stock trades about 0.0 of its potential returns per unit of risk. The Associated Capital Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,609 in Associated Capital Group on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Associated Capital Group or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Associated Capital Group
Performance |
| Timeline |
| Carlyle Secured Lending |
| Associated Capital |
Carlyle Secured and Associated Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Associated Capital
The main advantage of trading using opposite Carlyle Secured and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Associated 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 Associated Capital will offset losses from the drop in Associated Capital's long position.| Carlyle Secured vs. Sixth Street Specialty | Carlyle Secured vs. Golub Capital BDC | Carlyle Secured vs. Fidus Investment Corp | Carlyle Secured vs. New Mountain Finance |
| Associated Capital vs. TPG Inc | Associated Capital vs. Carlyle Secured Lending | Associated Capital vs. Brookfield Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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