Correlation Between Carlyle Secured and Abrdn Emerging
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Abrdn Emerging 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 Abrdn Emerging 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 Abrdn Emerging Markets, you can compare the effects of market volatilities on Carlyle Secured and Abrdn Emerging 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 Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Abrdn Emerging.
Diversification Opportunities for Carlyle Secured and Abrdn Emerging
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlyle and Abrdn is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Abrdn Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Emerging Markets 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 Abrdn Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Emerging Markets has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Abrdn Emerging go up and down completely randomly.
Pair Corralation between Carlyle Secured and Abrdn Emerging
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 0.95 times more return on investment than Abrdn Emerging. However, Carlyle Secured Lending is 1.06 times less risky than Abrdn Emerging. It trades about 0.05 of its potential returns per unit of risk. Abrdn Emerging Markets is currently generating about -0.12 per unit of risk. If you would invest 1,715 in Carlyle Secured Lending on August 31, 2024 and sell it today you would earn a total of 17.00 from holding Carlyle Secured Lending or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Abrdn Emerging Markets
Performance |
| Timeline |
| Carlyle Secured Lending |
| Abrdn Emerging Markets |
Carlyle Secured and Abrdn Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Abrdn Emerging
The main advantage of trading using opposite Carlyle Secured and Abrdn Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Abrdn Emerging 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 Abrdn Emerging will offset losses from the drop in Abrdn Emerging'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 |
| Abrdn Emerging vs. DWS Municipal Income | Abrdn Emerging vs. Blackrock Muni Intermediate | Abrdn Emerging vs. Blackrock Muniyield | Abrdn Emerging vs. Flow Capital 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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