Correlation Between PowerUp Acquisition and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition 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 PowerUp Acquisition and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PowerUp Acquisition Corp and Carlyle Secured Lending, you can compare the effects of market volatilities on PowerUp Acquisition 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 PowerUp Acquisition with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Carlyle Secured.
Diversification Opportunities for PowerUp Acquisition and Carlyle Secured
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PowerUp and Carlyle is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition 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 PowerUp Acquisition 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 PowerUp Acquisition 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 PowerUp Acquisition i.e., PowerUp Acquisition and Carlyle Secured go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Carlyle Secured
Given the investment horizon of 90 days PowerUp Acquisition Corp is expected to generate 2.77 times more return on investment than Carlyle Secured. However, PowerUp Acquisition is 2.77 times more volatile than Carlyle Secured Lending. It trades about 0.03 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.07 per unit of risk. If you would invest 1,124 in PowerUp Acquisition Corp on August 31, 2024 and sell it today you would earn a total of 26.00 from holding PowerUp Acquisition Corp or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Carlyle Secured Lending
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Carlyle Secured Lending |
PowerUp Acquisition and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Carlyle Secured
The main advantage of trading using opposite PowerUp Acquisition and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition 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.The idea behind PowerUp Acquisition Corp and Carlyle Secured Lending pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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