Correlation Between Carlyle Secured and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Angel Oak 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 Angel Oak 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 Angel Oak Financial, you can compare the effects of market volatilities on Carlyle Secured and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Angel Oak.
Diversification Opportunities for Carlyle Secured and Angel Oak
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlyle and Angel is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Angel Oak go up and down completely randomly.
Pair Corralation between Carlyle Secured and Angel Oak
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 1.92 times more return on investment than Angel Oak. However, Carlyle Secured is 1.92 times more volatile than Angel Oak Financial. It trades about 0.09 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.11 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Angel Oak Financial
Performance |
| Timeline |
| Carlyle Secured Lending |
| Angel Oak Financial |
Carlyle Secured and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Angel Oak
The main advantage of trading using opposite Carlyle Secured and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak'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 |
| Angel Oak vs. Eaton Vance National | Angel Oak vs. Invesco High Income | Angel Oak vs. Blackrock Muniholdings Ny | Angel Oak vs. Nuveen California Select |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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