Correlation Between Voyager Acquisition and Carlyle

Can any of the company-specific risk be diversified away by investing in both Voyager Acquisition 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 Voyager Acquisition and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voyager Acquisition Corp and The Carlyle Group, you can compare the effects of market volatilities on Voyager Acquisition 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 Voyager Acquisition with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voyager Acquisition and Carlyle.

Diversification Opportunities for Voyager Acquisition and Carlyle

-0.41

Correlation Coefficient

Voyager Acquisition  Carlyle

Very good diversification

The 3 months correlation between Voyager and Carlyle is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Voyager Acquisition Corp and The Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and Voyager Acquisition 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 Voyager Acquisition Corp 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 Voyager Acquisition i.e., Voyager Acquisition and Carlyle go up and down completely randomly.

Pair Corralation between Voyager Acquisition and Carlyle

Given the investment horizon of 90 days Voyager Acquisition Corp is expected to generate 0.09 times more return on investment than Carlyle. However, Voyager Acquisition Corp is 10.71 times less risky than Carlyle. It trades about 0.13 of its potential returns per unit of risk. The Carlyle Group is currently generating about -0.34 per unit of risk. If you would invest  1,002  in Voyager Acquisition Corp on September 18, 2024 and sell it today you would earn a total of  2.00  from holding Voyager Acquisition Corp or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Voyager Acquisition Corp  vs.  The Carlyle Group

Voyager Acquisition Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Carlyle Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Carlyle Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Carlyle is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Voyager Acquisition and Carlyle

The main advantage of trading using opposite Voyager Acquisition and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voyager Acquisition 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.

The idea behind Voyager Acquisition Corp and The Carlyle Group 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.

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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.