Correlation Between Investcorp Credit and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit 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 Investcorp Credit and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investcorp Credit Management and Carlyle Secured Lending, you can compare the effects of market volatilities on Investcorp Credit 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 Investcorp Credit with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Carlyle Secured.
Diversification Opportunities for Investcorp Credit and Carlyle Secured
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investcorp and Carlyle is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management 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 Investcorp Credit 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 Investcorp Credit Management 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 Investcorp Credit i.e., Investcorp Credit and Carlyle Secured go up and down completely randomly.
Pair Corralation between Investcorp Credit and Carlyle Secured
Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 1.92 times more return on investment than Carlyle Secured. However, Investcorp Credit is 1.92 times more volatile than Carlyle Secured Lending. It trades about 0.19 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.09 per unit of risk. If you would invest 299.00 in Investcorp Credit Management on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Investcorp Credit Management or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investcorp Credit Management vs. Carlyle Secured Lending
Performance |
| Timeline |
| Investcorp Credit |
| Carlyle Secured Lending |
Investcorp Credit and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and Carlyle Secured
The main advantage of trading using opposite Investcorp Credit and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit 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.| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
| Carlyle Secured vs. Visa Class A | Carlyle Secured vs. Diamond Hill Investment | Carlyle Secured vs. Distoken Acquisition | Carlyle Secured vs. Associated Capital Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |