Correlation Between Carlyle Secured and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Ameriprise Financial 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 Ameriprise Financial 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 Ameriprise Financial, you can compare the effects of market volatilities on Carlyle Secured and Ameriprise Financial 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 Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Ameriprise Financial.
Diversification Opportunities for Carlyle Secured and Ameriprise Financial
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Carlyle and Ameriprise is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial 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 Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Carlyle Secured and Ameriprise Financial
Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Ameriprise Financial. But the stock apears to be less risky and, when comparing its historical volatility, Carlyle Secured Lending is 2.17 times less risky than Ameriprise Financial. The stock trades about -0.03 of its potential returns per unit of risk. The Ameriprise Financial is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 51,190 in Ameriprise Financial on August 29, 2024 and sell it today you would earn a total of 6,211 from holding Ameriprise Financial or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Ameriprise Financial
Performance |
| Timeline |
| Carlyle Secured Lending |
| Ameriprise Financial |
Carlyle Secured and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Ameriprise Financial
The main advantage of trading using opposite Carlyle Secured and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial'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 |
| Ameriprise Financial vs. Carlyle Group | Ameriprise Financial vs. TPG Inc | Ameriprise Financial vs. Carlyle Secured Lending | Ameriprise Financial 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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