Correlation Between Carlyle Secured and BlackRock ESG
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and BlackRock ESG 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 ESG 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 ESG Capital, you can compare the effects of market volatilities on Carlyle Secured and BlackRock ESG 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 ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and BlackRock ESG.
Diversification Opportunities for Carlyle Secured and BlackRock ESG
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and BlackRock is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and BlackRock ESG Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock ESG 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 ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock ESG Capital has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and BlackRock ESG go up and down completely randomly.
Pair Corralation between Carlyle Secured and BlackRock ESG
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 1.29 times more return on investment than BlackRock ESG. However, Carlyle Secured is 1.29 times more volatile than BlackRock ESG Capital. It trades about 0.09 of its potential returns per unit of risk. BlackRock ESG Capital is currently generating about 0.1 per unit of risk. If you would invest 1,243 in Carlyle Secured Lending on August 31, 2024 and sell it today you would earn a total of 490.00 from holding Carlyle Secured Lending or generate 39.42% 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. BlackRock ESG Capital
Performance |
| Timeline |
| Carlyle Secured Lending |
| BlackRock ESG Capital |
Carlyle Secured and BlackRock ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and BlackRock ESG
The main advantage of trading using opposite Carlyle Secured and BlackRock ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, BlackRock ESG 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 ESG will offset losses from the drop in BlackRock ESG'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 ESG vs. Brightsphere Investment Group | BlackRock ESG vs. Franklin Templeton Limited | BlackRock ESG vs. Blackrock Muni Intermediate | BlackRock ESG vs. Munivest Fund |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |