Correlation Between Carlyle Secured and Main Street
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Main Street 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 Main Street 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 Main Street Capital, you can compare the effects of market volatilities on Carlyle Secured and Main Street 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 Main Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Main Street.
Diversification Opportunities for Carlyle Secured and Main Street
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carlyle and Main is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Main Street Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main Street 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 Main Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main Street Capital has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Main Street go up and down completely randomly.
Pair Corralation between Carlyle Secured and Main Street
Given the investment horizon of 90 days Carlyle Secured is expected to generate 1.28 times less return on investment than Main Street. In addition to that, Carlyle Secured is 1.24 times more volatile than Main Street Capital. It trades about 0.08 of its total potential returns per unit of risk. Main Street Capital is currently generating about 0.12 per unit of volatility. If you would invest 3,094 in Main Street Capital on August 27, 2024 and sell it today you would earn a total of 2,303 from holding Main Street Capital or generate 74.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Main Street Capital
Performance |
| Timeline |
| Carlyle Secured Lending |
| Main Street Capital |
Carlyle Secured and Main Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Main Street
The main advantage of trading using opposite Carlyle Secured and Main Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Main Street 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 Main Street will offset losses from the drop in Main Street's long position.| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
| Main Street vs. Gladstone Capital | Main Street vs. PennantPark Floating Rate | Main Street vs. Horizon Technology Finance | Main Street vs. Prospect Capital |
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.
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