Correlation Between Blackstone and Carlyle
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Carlyle Group, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Carlyle.
Diversification Opportunities for Blackstone and Carlyle
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Carlyle is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and Carlyle go up and down completely randomly.
Pair Corralation between Blackstone and Carlyle
Allowing for the 90-day total investment horizon Blackstone is expected to generate 1.05 times less return on investment than Carlyle. In addition to that, Blackstone is 1.06 times more volatile than Carlyle Group. It trades about 0.02 of its total potential returns per unit of risk. Carlyle Group is currently generating about 0.03 per unit of volatility. If you would invest 3,740 in Carlyle Group on January 24, 2024 and sell it today you would earn a total of 780.00 from holding Carlyle Group or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Blackstone Group vs. Carlyle Group
Performance |
| Timeline |
| Blackstone Group |
| Carlyle Group |
Blackstone and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Carlyle
The main advantage of trading using opposite Blackstone and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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