Correlation Between Carlyle Secured and Affiliated Managers
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Affiliated Managers 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 Affiliated Managers 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 Affiliated Managers Group, you can compare the effects of market volatilities on Carlyle Secured and Affiliated Managers 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 Affiliated Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Affiliated Managers.
Diversification Opportunities for Carlyle Secured and Affiliated Managers
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlyle and Affiliated is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Affiliated Managers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Managers 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 Affiliated Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Managers has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Affiliated Managers go up and down completely randomly.
Pair Corralation between Carlyle Secured and Affiliated Managers
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 0.83 times more return on investment than Affiliated Managers. However, Carlyle Secured Lending is 1.21 times less risky than Affiliated Managers. It trades about -0.18 of its potential returns per unit of risk. Affiliated Managers Group is currently generating about -0.33 per unit of risk. If you would invest 1,846 in Carlyle Secured Lending on November 18, 2024 and sell it today you would lose (78.00) from holding Carlyle Secured Lending or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Affiliated Managers Group
Performance |
| Timeline |
| Carlyle Secured Lending |
| Affiliated Managers |
Carlyle Secured and Affiliated Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Affiliated Managers
The main advantage of trading using opposite Carlyle Secured and Affiliated Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Affiliated Managers 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 Affiliated Managers will offset losses from the drop in Affiliated Managers' 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 |
| Affiliated Managers vs. Horizon Space Acquisition | Affiliated Managers vs. Erayak Power Solution | Affiliated Managers vs. AlphaTime Acquisition Corp | Affiliated Managers vs. Israel Acquisitions 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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