Correlation Between Carlyle Secured and 1812 Brewing
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and 1812 Brewing 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 1812 Brewing 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 1812 Brewing, you can compare the effects of market volatilities on Carlyle Secured and 1812 Brewing 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 1812 Brewing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and 1812 Brewing.
Diversification Opportunities for Carlyle Secured and 1812 Brewing
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlyle and 1812 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and 1812 Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1812 Brewing 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 1812 Brewing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1812 Brewing has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and 1812 Brewing go up and down completely randomly.
Pair Corralation between Carlyle Secured and 1812 Brewing
Given the investment horizon of 90 days Carlyle Secured is expected to generate 789.47 times less return on investment than 1812 Brewing. But when comparing it to its historical volatility, Carlyle Secured Lending is 236.25 times less risky than 1812 Brewing. It trades about 0.08 of its potential returns per unit of risk. 1812 Brewing is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.03 in 1812 Brewing on December 11, 2024 and sell it today you would lose (0.02) from holding 1812 Brewing or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. 1812 Brewing
Performance |
| Timeline |
| Carlyle Secured Lending |
| 1812 Brewing |
Carlyle Secured and 1812 Brewing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and 1812 Brewing
The main advantage of trading using opposite Carlyle Secured and 1812 Brewing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, 1812 Brewing 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 1812 Brewing will offset losses from the drop in 1812 Brewing'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 |
| 1812 Brewing vs. Indo Global Exchange | 1812 Brewing vs. Resort Savers | 1812 Brewing vs. Genesis Electronics Group | 1812 Brewing vs. TonnerOne World Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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