Correlation Between Carlyle Secured and Cornerstone Strategic
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Cornerstone Strategic 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 Cornerstone Strategic 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 Cornerstone Strategic Value, you can compare the effects of market volatilities on Carlyle Secured and Cornerstone Strategic 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 Cornerstone Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Cornerstone Strategic.
Diversification Opportunities for Carlyle Secured and Cornerstone Strategic
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and Cornerstone is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Cornerstone Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Strategic 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 Cornerstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Strategic has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Cornerstone Strategic go up and down completely randomly.
Pair Corralation between Carlyle Secured and Cornerstone Strategic
Given the investment horizon of 90 days Carlyle Secured is expected to generate 1.39 times less return on investment than Cornerstone Strategic. In addition to that, Carlyle Secured is 1.02 times more volatile than Cornerstone Strategic Value. It trades about 0.11 of its total potential returns per unit of risk. Cornerstone Strategic Value is currently generating about 0.15 per unit of volatility. If you would invest 596.00 in Cornerstone Strategic Value on November 9, 2024 and sell it today you would earn a total of 298.00 from holding Cornerstone Strategic Value or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Cornerstone Strategic Value
Performance |
| Timeline |
| Carlyle Secured Lending |
| Cornerstone Strategic |
Carlyle Secured and Cornerstone Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Cornerstone Strategic
The main advantage of trading using opposite Carlyle Secured and Cornerstone Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Cornerstone Strategic 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 Cornerstone Strategic will offset losses from the drop in Cornerstone Strategic'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 |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |