Correlation Between BlackRock ESG and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both BlackRock ESG 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 BlackRock ESG and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock ESG Capital and Carlyle Secured Lending, you can compare the effects of market volatilities on BlackRock ESG 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 BlackRock ESG with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock ESG and Carlyle Secured.
Diversification Opportunities for BlackRock ESG and Carlyle Secured
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BlackRock and Carlyle is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital 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 BlackRock ESG 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 BlackRock ESG Capital 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 BlackRock ESG i.e., BlackRock ESG and Carlyle Secured go up and down completely randomly.
Pair Corralation between BlackRock ESG and Carlyle Secured
Given the investment horizon of 90 days BlackRock ESG is expected to generate 1.12 times less return on investment than Carlyle Secured. But when comparing it to its historical volatility, BlackRock ESG Capital is 1.29 times less risky than Carlyle Secured. It trades about 0.1 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.09 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock ESG Capital vs. Carlyle Secured Lending
Performance |
| Timeline |
| BlackRock ESG Capital |
| Carlyle Secured Lending |
BlackRock ESG and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock ESG and Carlyle Secured
The main advantage of trading using opposite BlackRock ESG and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock ESG 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.| BlackRock ESG vs. Brightsphere Investment Group | BlackRock ESG vs. Franklin Templeton Limited | BlackRock ESG vs. Blackrock Muni Intermediate | BlackRock ESG vs. Munivest Fund |
| Carlyle Secured vs. Sixth Street Specialty | Carlyle Secured vs. Golub Capital BDC | Carlyle Secured vs. Fidus Investment Corp | Carlyle Secured vs. New Mountain Finance |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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