Correlation Between Carlyle Secured and Blackstone
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Carlyle Secured and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Blackstone.
Diversification Opportunities for Carlyle Secured and Blackstone
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Carlyle and Blackstone is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Blackstone go up and down completely randomly.
Pair Corralation between Carlyle Secured and Blackstone
Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Blackstone. But the stock apears to be less risky and, when comparing its historical volatility, Carlyle Secured Lending is 1.33 times less risky than Blackstone. The stock trades about -0.15 of its potential returns per unit of risk. The Blackstone Group is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 16,606 in Blackstone Group on August 24, 2024 and sell it today you would earn a total of 1,897 from holding Blackstone Group or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Blackstone Group
Performance |
| Timeline |
| Carlyle Secured Lending |
| Blackstone Group |
Carlyle Secured and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Blackstone
The main advantage of trading using opposite Carlyle Secured and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone'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 |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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