Correlation Between Carlyle Secured and Franklin Resources
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Franklin Resources 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 Franklin Resources 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 Franklin Resources, you can compare the effects of market volatilities on Carlyle Secured and Franklin Resources 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 Franklin Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Franklin Resources.
Diversification Opportunities for Carlyle Secured and Franklin Resources
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Carlyle and Franklin is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Franklin Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Resources 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 Franklin Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Resources has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Franklin Resources go up and down completely randomly.
Pair Corralation between Carlyle Secured and Franklin Resources
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 0.57 times more return on investment than Franklin Resources. However, Carlyle Secured Lending is 1.75 times less risky than Franklin Resources. It trades about 0.02 of its potential returns per unit of risk. Franklin Resources is currently generating about 0.01 per unit of risk. If you would invest 1,702 in Carlyle Secured Lending on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Carlyle Secured Lending or generate 1.82% 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. Franklin Resources
Performance |
| Timeline |
| Carlyle Secured Lending |
| Franklin Resources |
Carlyle Secured and Franklin Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Franklin Resources
The main advantage of trading using opposite Carlyle Secured and Franklin Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Franklin Resources 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 Franklin Resources will offset losses from the drop in Franklin Resources' long position.| Carlyle Secured vs. Visa Class A | Carlyle Secured vs. Diamond Hill Investment | Carlyle Secured vs. Distoken Acquisition | Carlyle Secured vs. Associated Capital Group |
| Franklin Resources vs. BlackRock | Franklin Resources vs. Main Street Capital | Franklin Resources vs. Blackstone Group | Franklin Resources vs. Ares Capital |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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