Correlation Between Carlyle and EHealth

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

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

Diversification Opportunities for Carlyle and EHealth

-0.46

Correlation Coefficient

Carlyle  EHealth

Very good diversification

The 3 months correlation between Carlyle and EHealth is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and eHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eHealth 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 EHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eHealth has no effect on the direction of Carlyle i.e., Carlyle and EHealth go up and down completely randomly.

Pair Corralation between Carlyle and EHealth

Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 0.55 times more return on investment than EHealth. However, Carlyle Group is 1.83 times less risky than EHealth. It trades about 0.32 of its potential returns per unit of risk. eHealth is currently generating about -0.21 per unit of risk. If you would invest  3,966  in Carlyle Group on May 7, 2025 and sell it today you would earn a total of  2,044  from holding Carlyle Group or generate 51.54% return on investment over 90 days.

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

Carlyle Group  vs.  eHealth

Carlyle Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Carlyle Group are ranked lower than 25 (%) 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.

eHealth

Risk-Adjusted Performance

Weakest

Over the last 90 days eHealth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Carlyle and EHealth

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

The idea behind Carlyle Group and eHealth 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.