Correlation Between Carlyle Secured and BlackRock
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and BlackRock 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 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, you can compare the effects of market volatilities on Carlyle Secured and BlackRock 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and BlackRock.
Diversification Opportunities for Carlyle Secured and BlackRock
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carlyle and BlackRock is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and BlackRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and BlackRock go up and down completely randomly.
Pair Corralation between Carlyle Secured and BlackRock
Given the investment horizon of 90 days Carlyle Secured is expected to generate 1.63 times less return on investment than BlackRock. But when comparing it to its historical volatility, Carlyle Secured Lending is 1.07 times less risky than BlackRock. It trades about 0.09 of its potential returns per unit of risk. BlackRock is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 71,835 in BlackRock on August 24, 2024 and sell it today you would earn a total of 30,965 from holding BlackRock or generate 43.11% 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. BlackRock
Performance |
| Timeline |
| Carlyle Secured Lending |
| BlackRock |
Carlyle Secured and BlackRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and BlackRock
The main advantage of trading using opposite Carlyle Secured and BlackRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, BlackRock 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 will offset losses from the drop in BlackRock'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 vs. KKR Co LP | BlackRock vs. Apollo Global Management | BlackRock vs. Brookfield Asset Management | BlackRock vs. Carlyle Group |
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.
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