Correlation Between Carlyle and First BITCoin
Can any of the company-specific risk be diversified away by investing in both Carlyle and First BITCoin 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 First BITCoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and First BITCoin Capital, you can compare the effects of market volatilities on Carlyle and First BITCoin 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 First BITCoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and First BITCoin.
Diversification Opportunities for Carlyle and First BITCoin
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlyle and First is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and First BITCoin Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First BITCoin Capital 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 First BITCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First BITCoin Capital has no effect on the direction of Carlyle i.e., Carlyle and First BITCoin go up and down completely randomly.
Pair Corralation between Carlyle and First BITCoin
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 0.16 times more return on investment than First BITCoin. However, Carlyle Group is 6.14 times less risky than First BITCoin. It trades about -0.26 of its potential returns per unit of risk. First BITCoin Capital is currently generating about -0.15 per unit of risk. If you would invest 4,715 in Carlyle Group on February 5, 2024 and sell it today you would lose (609.00) from holding Carlyle Group or give up 12.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Carlyle Group vs. First BITCoin Capital
Performance |
Timeline |
Carlyle Group |
First BITCoin Capital |
Carlyle and First BITCoin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Carlyle and First BITCoin
The main advantage of trading using opposite Carlyle and First BITCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, First BITCoin 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 First BITCoin will offset losses from the drop in First BITCoin's long position.Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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