Correlation Between Carlyle Secured and BlackRock Capital
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and BlackRock 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 BlackRock 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 BlackRock Capital Allocation, you can compare the effects of market volatilities on Carlyle Secured and BlackRock 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 BlackRock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and BlackRock Capital.
Diversification Opportunities for Carlyle Secured and BlackRock Capital
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlyle and BlackRock is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and BlackRock Capital Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock 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 BlackRock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Capital has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and BlackRock Capital go up and down completely randomly.
Pair Corralation between Carlyle Secured and BlackRock Capital
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 1.34 times more return on investment than BlackRock Capital. However, Carlyle Secured is 1.34 times more volatile than BlackRock Capital Allocation. It trades about 0.11 of its potential returns per unit of risk. BlackRock Capital Allocation is currently generating about 0.09 per unit of risk. If you would invest 1,085 in Carlyle Secured Lending on November 1, 2024 and sell it today you would earn a total of 763.00 from holding Carlyle Secured Lending or generate 70.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. BlackRock Capital Allocation
Performance |
| Timeline |
| Carlyle Secured Lending |
| BlackRock Capital |
Carlyle Secured and BlackRock Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and BlackRock Capital
The main advantage of trading using opposite Carlyle Secured and BlackRock Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, BlackRock 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 BlackRock Capital will offset losses from the drop in BlackRock 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 |
| BlackRock Capital vs. BlackRock Health Sciences | BlackRock Capital vs. BlackRock Science and | BlackRock Capital vs. Neuberger Berman Next | BlackRock Capital vs. Virtus Allianzgi Artificial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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