Correlation Between Carlyle Secured and Brookfield Asset
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Brookfield Asset 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 Brookfield Asset 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 Brookfield Asset Management, you can compare the effects of market volatilities on Carlyle Secured and Brookfield Asset 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 Brookfield Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Brookfield Asset.
Diversification Opportunities for Carlyle Secured and Brookfield Asset
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Carlyle and Brookfield is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Brookfield Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Asset Man 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 Brookfield Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Asset Man has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Brookfield Asset go up and down completely randomly.
Pair Corralation between Carlyle Secured and Brookfield Asset
Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Brookfield Asset. But the stock apears to be less risky and, when comparing its historical volatility, Carlyle Secured Lending is 1.19 times less risky than Brookfield Asset. The stock trades about -0.08 of its potential returns per unit of risk. The Brookfield Asset Management is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,338 in Brookfield Asset Management on August 27, 2024 and sell it today you would earn a total of 273.00 from holding Brookfield Asset Management or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Brookfield Asset Management
Performance |
| Timeline |
| Carlyle Secured Lending |
| Brookfield Asset Man |
Carlyle Secured and Brookfield Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Brookfield Asset
The main advantage of trading using opposite Carlyle Secured and Brookfield Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Brookfield Asset 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 Brookfield Asset will offset losses from the drop in Brookfield Asset's long position.| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
| Brookfield Asset vs. KKR Co LP | Brookfield Asset vs. Blackstone Group | Brookfield Asset vs. Apollo Global Management | Brookfield Asset vs. T Rowe Price |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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