Correlation Between Patria Investments and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Patria Investments 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 Patria Investments and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Patria Investments and Carlyle Secured Lending, you can compare the effects of market volatilities on Patria Investments 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 Patria Investments with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patria Investments and Carlyle Secured.
Diversification Opportunities for Patria Investments and Carlyle Secured
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Patria and Carlyle is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Patria Investments 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 Patria Investments 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 Patria Investments 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 Patria Investments i.e., Patria Investments and Carlyle Secured go up and down completely randomly.
Pair Corralation between Patria Investments and Carlyle Secured
Considering the 90-day investment horizon Patria Investments is expected to generate 2.16 times less return on investment than Carlyle Secured. In addition to that, Patria Investments is 2.19 times more volatile than Carlyle Secured Lending. It trades about 0.05 of its total potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.23 per unit of volatility. If you would invest 1,630 in Carlyle Secured Lending on November 1, 2024 and sell it today you would earn a total of 218.00 from holding Carlyle Secured Lending or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patria Investments vs. Carlyle Secured Lending
Performance |
| Timeline |
| Patria Investments |
| Carlyle Secured Lending |
Patria Investments and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patria Investments and Carlyle Secured
The main advantage of trading using opposite Patria Investments and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patria Investments 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.| Patria Investments vs. Invesco Advantage MIT | Patria Investments vs. Invesco Municipal Trust | Patria Investments vs. Invesco California Value | Patria Investments vs. Ares Management LP |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |