Correlation Between Carlyle and NewtekOne, 850

Can any of the company-specific risk be diversified away by investing in both Carlyle and NewtekOne, 850 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 NewtekOne, 850 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carlyle Group and NewtekOne, 850 percent, you can compare the effects of market volatilities on Carlyle and NewtekOne, 850 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 NewtekOne, 850. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and NewtekOne, 850.

Diversification Opportunities for Carlyle and NewtekOne, 850

0.62

Correlation Coefficient

Carlyle  NewtekOne, 850

Poor diversification

The 3 months correlation between Carlyle and NewtekOne, is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and NewtekOne, 850 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewtekOne, 850 percent 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 NewtekOne, 850. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewtekOne, 850 percent has no effect on the direction of Carlyle i.e., Carlyle and NewtekOne, 850 go up and down completely randomly.

Pair Corralation between Carlyle and NewtekOne, 850

Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 5.77 times more return on investment than NewtekOne, 850. However, Carlyle is 5.77 times more volatile than NewtekOne, 850 percent. It trades about 0.23 of its potential returns per unit of risk. NewtekOne, 850 percent is currently generating about 0.01 per unit of risk. If you would invest  4,080  in Carlyle Group on September 14, 2024 and sell it today you would earn a total of  1,401  from holding Carlyle Group or generate 34.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Carlyle Group  vs.  NewtekOne, 850 percent

Carlyle Group

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Carlyle Group are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Carlyle reported solid returns over the last few months and may actually be approaching a breakup point.

NewtekOne, 850 percent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NewtekOne, 850 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, NewtekOne, 850 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Carlyle and NewtekOne, 850

The main advantage of trading using opposite Carlyle and NewtekOne, 850 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, NewtekOne, 850 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 NewtekOne, 850 will offset losses from the drop in NewtekOne, 850's long position.

The idea behind Carlyle Group and NewtekOne, 850 percent 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.