Correlation Between Affiliated Managers and Carlyle
Can any of the company-specific risk be diversified away by investing in both Affiliated Managers 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 Affiliated Managers and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affiliated Managers Group, and The Carlyle Group, you can compare the effects of market volatilities on Affiliated Managers 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 Affiliated Managers with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and Carlyle.
Diversification Opportunities for Affiliated Managers and Carlyle
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Affiliated and Carlyle is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group, and The Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and Affiliated Managers 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 Affiliated Managers 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 Affiliated Managers i.e., Affiliated Managers and Carlyle go up and down completely randomly.
Pair Corralation between Affiliated Managers and Carlyle
Given the investment horizon of 90 days Affiliated Managers Group, is expected to under-perform the Carlyle. But the stock apears to be less risky and, when comparing its historical volatility, Affiliated Managers Group, is 1.24 times less risky than Carlyle. The stock trades about -0.19 of its potential returns per unit of risk. The The Carlyle Group is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 1,972 in The Carlyle Group on September 26, 2024 and sell it today you would lose (198.00) from holding The Carlyle Group or give up 10.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Affiliated Managers Group, vs. The Carlyle Group
Performance |
Timeline |
Affiliated Managers |
Carlyle Group |
Affiliated Managers and Carlyle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Affiliated Managers and Carlyle
The main advantage of trading using opposite Affiliated Managers and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers 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.Affiliated Managers vs. Affiliated Managers Group, | Affiliated Managers vs. Southern Company Series | Affiliated Managers vs. Affiliated Managers Group | Affiliated Managers vs. Southern Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |