Correlation Between United States and Carlyle
Can any of the company-specific risk be diversified away by investing in both United States and Carlyle 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 United States and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States 12 and Carlyle Group, you can compare the effects of market volatilities on United States and Carlyle 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 United States with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Carlyle.
Diversification Opportunities for United States and Carlyle
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Carlyle is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding United States 12 and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and United States 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 United States 12 are associated (or correlated) with Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of United States i.e., United States and Carlyle go up and down completely randomly.
Pair Corralation between United States and Carlyle
Considering the 90-day investment horizon United States 12 is expected to generate 0.62 times more return on investment than Carlyle. However, United States 12 is 1.62 times less risky than Carlyle. It trades about 0.13 of its potential returns per unit of risk. Carlyle Group is currently generating about -0.02 per unit of risk. If you would invest 3,958 in United States 12 on January 25, 2024 and sell it today you would earn a total of 91.00 from holding United States 12 or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States 12 vs. Carlyle Group
Performance |
| Timeline |
| United States 12 |
| Carlyle Group |
United States and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Carlyle
The main advantage of trading using opposite United States and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Carlyle 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 will offset losses from the drop in Carlyle's long position.| United States vs. HUMANA INC | United States vs. Aquagold International | United States vs. Barloworld Ltd ADR | United States vs. Morningstar Unconstrained Allocation |
| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |