Correlation Between Brightsphere Investment and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Brightsphere Investment 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 Brightsphere Investment and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brightsphere Investment Group and Carlyle Secured Lending, you can compare the effects of market volatilities on Brightsphere Investment 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 Brightsphere Investment with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brightsphere Investment and Carlyle Secured.
Diversification Opportunities for Brightsphere Investment and Carlyle Secured
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brightsphere and Carlyle is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Brightsphere Investment Group 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 Brightsphere Investment 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 Brightsphere Investment Group 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 Brightsphere Investment i.e., Brightsphere Investment and Carlyle Secured go up and down completely randomly.
Pair Corralation between Brightsphere Investment and Carlyle Secured
Given the investment horizon of 90 days Brightsphere Investment Group is expected to under-perform the Carlyle Secured. In addition to that, Brightsphere Investment is 1.15 times more volatile than Carlyle Secured Lending. It trades about -0.06 of its total potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.32 per unit of volatility. If you would invest 1,616 in Carlyle Secured Lending on February 4, 2024 and sell it today you would earn a total of 102.00 from holding Carlyle Secured Lending or generate 6.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Brightsphere Investment Group vs. Carlyle Secured Lending
Performance |
Timeline |
Brightsphere Investment |
Carlyle Secured Lending |
Brightsphere Investment and Carlyle Secured Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brightsphere Investment and Carlyle Secured
The main advantage of trading using opposite Brightsphere Investment and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brightsphere Investment 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 Brightsphere Investment Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |