Correlation Between Eat Well and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Eat Well 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 Eat Well and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eat Well Investment and Carlyle Secured Lending, you can compare the effects of market volatilities on Eat Well 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 Eat Well with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Well and Carlyle Secured.
Diversification Opportunities for Eat Well and Carlyle Secured
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eat and Carlyle is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eat Well 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 Eat Well 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 Eat Well 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 Eat Well i.e., Eat Well and Carlyle Secured go up and down completely randomly.
Pair Corralation between Eat Well and Carlyle Secured
Assuming the 90 days horizon Eat Well Investment is expected to generate 48.49 times more return on investment than Carlyle Secured. However, Eat Well is 48.49 times more volatile than Carlyle Secured Lending. It trades about 0.07 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.08 per unit of risk. If you would invest 16.00 in Eat Well Investment on October 15, 2024 and sell it today you would lose (15.00) from holding Eat Well Investment or give up 93.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Well Investment vs. Carlyle Secured Lending
Performance |
| Timeline |
| Eat Well Investment |
| Carlyle Secured Lending |
Eat Well and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Well and Carlyle Secured
The main advantage of trading using opposite Eat Well and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Well 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.| Eat Well vs. Flow Capital Corp | Eat Well vs. Guardian Capital Group | Eat Well vs. Urbana | Eat Well vs. Princeton Capital |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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