Correlation Between Diamond Hill and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Diamond Hill and Carlyle Secured 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 Diamond Hill and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Hill Investment and Carlyle Secured Lending, you can compare the effects of market volatilities on Diamond Hill and Carlyle Secured 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 Diamond Hill with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Hill and Carlyle Secured.
Diversification Opportunities for Diamond Hill and Carlyle Secured
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Diamond and Carlyle is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Hill Investment and Carlyle Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Secured Lending and Diamond Hill 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 Diamond Hill Investment are associated (or correlated) with Carlyle Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Secured Lending has no effect on the direction of Diamond Hill i.e., Diamond Hill and Carlyle Secured go up and down completely randomly.
Pair Corralation between Diamond Hill and Carlyle Secured
Given the investment horizon of 90 days Diamond Hill is expected to generate 5.44 times less return on investment than Carlyle Secured. In addition to that, Diamond Hill is 1.29 times more volatile than Carlyle Secured Lending. It trades about 0.01 of its total potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.08 per unit of volatility. If you would invest 1,115 in Carlyle Secured Lending on August 28, 2024 and sell it today you would earn a total of 585.00 from holding Carlyle Secured Lending or generate 52.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Diamond Hill Investment vs. Carlyle Secured Lending
Performance |
Timeline |
Diamond Hill Investment |
Carlyle Secured Lending |
Diamond Hill and Carlyle Secured Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Diamond Hill and Carlyle Secured
The main advantage of trading using opposite Diamond Hill and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Hill position performs unexpectedly, Carlyle Secured 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 Carlyle Secured will offset losses from the drop in Carlyle Secured's long position.Diamond Hill vs. Federated Premier Municipal | Diamond Hill vs. Blackrock Muniyield | Diamond Hill vs. NXG NextGen Infrastructure | Diamond Hill vs. Federated Investors B |
Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |