Correlation Between Center Coast and Carlyle

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

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

Diversification Opportunities for Center Coast and Carlyle

0.0

Correlation Coefficient

Center Coast  Carlyle

Pay attention - limited upside

The 3 months correlation between Center and Carlyle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Center Coast Mlp and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and Center Coast 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 Center Coast Mlp 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 Center Coast i.e., Center Coast and Carlyle go up and down completely randomly.

Pair Corralation between Center Coast and Carlyle

If you would invest (100.00) in Center Coast Mlp on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Center Coast Mlp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Center Coast Mlp  vs.  Carlyle Group

Center Coast Mlp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Center Coast Mlp has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy technical and fundamental indicators, Center Coast is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Carlyle Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carlyle Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Center Coast and Carlyle

The main advantage of trading using opposite Center Coast and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Center Coast 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 Center Coast Mlp and 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 Global Correlations module to find global opportunities by holding instruments from different markets.