Correlation Between XAI Octagon and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both XAI Octagon 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 XAI Octagon and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAI Octagon Floating and Carlyle Secured Lending, you can compare the effects of market volatilities on XAI Octagon 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 XAI Octagon with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAI Octagon and Carlyle Secured.
Diversification Opportunities for XAI Octagon and Carlyle Secured
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XAI and Carlyle is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating 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 XAI Octagon 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 XAI Octagon Floating 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 XAI Octagon i.e., XAI Octagon and Carlyle Secured go up and down completely randomly.
Pair Corralation between XAI Octagon and Carlyle Secured
Given the investment horizon of 90 days XAI Octagon Floating is expected to under-perform the Carlyle Secured. But the stock apears to be less risky and, when comparing its historical volatility, XAI Octagon Floating is 1.01 times less risky than Carlyle Secured. The stock trades about 0.0 of its potential returns per unit of risk. The Carlyle Secured Lending is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,795 in Carlyle Secured Lending on November 9, 2024 and sell it today you would earn a total of 42.00 from holding Carlyle Secured Lending or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAI Octagon Floating vs. Carlyle Secured Lending
Performance |
| Timeline |
| XAI Octagon Floating |
| Carlyle Secured Lending |
XAI Octagon and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAI Octagon and Carlyle Secured
The main advantage of trading using opposite XAI Octagon and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAI Octagon 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.| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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