Correlation Between PhenixFIN 525 and Carlyle

Can any of the company-specific risk be diversified away by investing in both PhenixFIN 525 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 PhenixFIN 525 and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PhenixFIN 525 and The Carlyle Group, you can compare the effects of market volatilities on PhenixFIN 525 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 PhenixFIN 525 with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of PhenixFIN 525 and Carlyle.

Diversification Opportunities for PhenixFIN 525 and Carlyle

-0.37

Correlation Coefficient

PhenixFIN 525  Carlyle

Very good diversification

The 3 months correlation between PhenixFIN and Carlyle is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PhenixFIN 525 and The Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and PhenixFIN 525 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 PhenixFIN 525 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 PhenixFIN 525 i.e., PhenixFIN 525 and Carlyle go up and down completely randomly.

Pair Corralation between PhenixFIN 525 and Carlyle

Assuming the 90 days horizon PhenixFIN 525 is expected to generate 0.53 times more return on investment than Carlyle. However, PhenixFIN 525 is 1.9 times less risky than Carlyle. It trades about 0.04 of its potential returns per unit of risk. The Carlyle Group is currently generating about -0.16 per unit of risk. If you would invest  2,257  in PhenixFIN 525 on October 13, 2024 and sell it today you would earn a total of  24.00  from holding PhenixFIN 525 or generate 1.06% return on investment over 90 days.

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

PhenixFIN 525  vs.  The Carlyle Group

PhenixFIN 525

Risk-Adjusted Performance

2 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PhenixFIN 525 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, PhenixFIN 525 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 latest uncertain performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with PhenixFIN 525 and Carlyle

The main advantage of trading using opposite PhenixFIN 525 and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PhenixFIN 525 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 PhenixFIN 525 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.