Correlation Between OFS Capital and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both OFS Capital 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 OFS Capital and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Capital Corp and Carlyle Secured Lending, you can compare the effects of market volatilities on OFS Capital 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 OFS Capital with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Capital and Carlyle Secured.
Diversification Opportunities for OFS Capital and Carlyle Secured
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OFS and Carlyle is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding OFS Capital Corp 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 OFS Capital 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 OFS Capital Corp 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 OFS Capital i.e., OFS Capital and Carlyle Secured go up and down completely randomly.
Pair Corralation between OFS Capital and Carlyle Secured
Considering the 90-day investment horizon OFS Capital Corp is expected to under-perform the Carlyle Secured. In addition to that, OFS Capital is 1.56 times more volatile than Carlyle Secured Lending. It trades about -0.02 of its total potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.09 per unit of volatility. If you would invest 1,343 in Carlyle Secured Lending on August 24, 2024 and sell it today you would earn a total of 324.00 from holding Carlyle Secured Lending or generate 24.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFS Capital Corp vs. Carlyle Secured Lending
Performance |
| Timeline |
| OFS Capital Corp |
| Carlyle Secured Lending |
OFS Capital and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Capital and Carlyle Secured
The main advantage of trading using opposite OFS Capital and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Capital 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.| OFS Capital vs. Invesco Advantage MIT | OFS Capital vs. Invesco Municipal Trust | OFS Capital vs. Invesco California Value | OFS Capital vs. Victory Capital Holdings |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |