Correlation Between Carlyle Secured and Ares Capital
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Ares 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 Ares 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 Ares Capital, you can compare the effects of market volatilities on Carlyle Secured and Ares 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 Ares Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Ares Capital.
Diversification Opportunities for Carlyle Secured and Ares Capital
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and Ares is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Ares Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares 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 Ares Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Capital has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Ares Capital go up and down completely randomly.
Pair Corralation between Carlyle Secured and Ares Capital
Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Ares Capital. In addition to that, Carlyle Secured is 1.44 times more volatile than Ares Capital. It trades about 0.0 of its total potential returns per unit of risk. Ares Capital is currently generating about 0.07 per unit of volatility. If you would invest 2,037 in Ares Capital on August 24, 2024 and sell it today you would earn a total of 141.00 from holding Ares Capital or generate 6.92% 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. Ares Capital
Performance |
| Timeline |
| Carlyle Secured Lending |
| Ares Capital |
Carlyle Secured and Ares Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Ares Capital
The main advantage of trading using opposite Carlyle Secured and Ares Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Ares 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 Ares Capital will offset losses from the drop in Ares 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 |
| Ares Capital vs. Triplepoint Venture Growth | Ares Capital vs. Sixth Street Specialty | Ares Capital vs. Main Street Capital | Ares Capital vs. Capital Southwest |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |