Correlation Between Carlyle Secured and Oaktree Specialty
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured and Oaktree Specialty 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 Oaktree Specialty 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 Oaktree Specialty Lending, you can compare the effects of market volatilities on Carlyle Secured and Oaktree Specialty 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 Oaktree Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Oaktree Specialty.
Diversification Opportunities for Carlyle Secured and Oaktree Specialty
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and Oaktree is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Oaktree Specialty Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Specialty Lending 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 Oaktree Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Specialty Lending has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Oaktree Specialty go up and down completely randomly.
Pair Corralation between Carlyle Secured and Oaktree Specialty
Given the investment horizon of 90 days Carlyle Secured Lending is expected to generate 0.97 times more return on investment than Oaktree Specialty. However, Carlyle Secured Lending is 1.03 times less risky than Oaktree Specialty. It trades about 0.02 of its potential returns per unit of risk. Oaktree Specialty Lending is currently generating about -0.08 per unit of risk. If you would invest 1,702 in Carlyle Secured Lending on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Carlyle Secured Lending or generate 1.82% 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. Oaktree Specialty Lending
Performance |
| Timeline |
| Carlyle Secured Lending |
| Oaktree Specialty Lending |
Carlyle Secured and Oaktree Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Oaktree Specialty
The main advantage of trading using opposite Carlyle Secured and Oaktree Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured position performs unexpectedly, Oaktree Specialty 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 Oaktree Specialty will offset losses from the drop in Oaktree Specialty's long position.| Carlyle Secured vs. Visa Class A | Carlyle Secured vs. Diamond Hill Investment | Carlyle Secured vs. Distoken Acquisition | Carlyle Secured vs. Associated Capital Group |
| Oaktree Specialty vs. Barings BDC | Oaktree Specialty vs. OneMain Holdings | Oaktree Specialty vs. Runway Growth Finance | Oaktree Specialty vs. Ally Financial |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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