Correlation Between Carlyle and Blackstone
Can any of the company-specific risk be diversified away by investing in both Carlyle and Blackstone 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 Carlyle and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Blackstone Group, you can compare the effects of market volatilities on Carlyle and Blackstone 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 Carlyle with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Blackstone.
Diversification Opportunities for Carlyle and Blackstone
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carlyle and Blackstone is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Carlyle 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 Carlyle Group are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Carlyle i.e., Carlyle and Blackstone go up and down completely randomly.
Pair Corralation between Carlyle and Blackstone
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 0.69 times more return on investment than Blackstone. However, Carlyle Group is 1.45 times less risky than Blackstone. It trades about -0.02 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.07 per unit of risk. If you would invest 4,644 in Carlyle Group on January 26, 2024 and sell it today you would lose (32.00) from holding Carlyle Group or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Blackstone Group
Performance |
| Timeline |
| Carlyle Group |
| Blackstone Group |
Carlyle and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Blackstone
The main advantage of trading using opposite Carlyle and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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