Correlation Between 694308JU2 and Carlyle

Can any of the company-specific risk be diversified away by investing in both 694308JU2 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 694308JU2 and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 42 01 JUN 41 and Carlyle Group, you can compare the effects of market volatilities on 694308JU2 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 694308JU2 with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308JU2 and Carlyle.

Diversification Opportunities for 694308JU2 and Carlyle

0.15

Correlation Coefficient

694308JU2  Carlyle

Average diversification

The 3 months correlation between 694308JU2 and Carlyle is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PCG 42 01 JUN 41 and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and 694308JU2 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 PCG 42 01 JUN 41 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 694308JU2 i.e., 694308JU2 and Carlyle go up and down completely randomly.

Pair Corralation between 694308JU2 and Carlyle

Assuming the 90 days trading horizon PCG 42 01 JUN 41 is expected to under-perform the Carlyle. But the bond apears to be less risky and, when comparing its historical volatility, PCG 42 01 JUN 41 is 1.23 times less risky than Carlyle. The bond trades about -0.18 of its potential returns per unit of risk. The Carlyle Group is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  5,163  in Carlyle Group on December 25, 2024 and sell it today you would lose (539.00) from holding Carlyle Group or give up 10.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	79.66%
Values	Daily Returns

PCG 42 01 JUN 41  vs.  Carlyle Group

PCG 42 01

Risk-Adjusted Performance

Very Weak

Over the last 90 days PCG 42 01 JUN 41 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for PCG 42 01 JUN 41 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 unfluctuating 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 694308JU2 and Carlyle

The main advantage of trading using opposite 694308JU2 and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308JU2 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 PCG 42 01 JUN 41 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.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.