Correlation Between Carlyle Secured and Blackrock Muniholdings

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

By analyzing existing cross correlation between Carlyle Secured Lending and Blackrock Muniholdings Closed, you can compare the effects of market volatilities on Carlyle Secured and Blackrock Muniholdings 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 Secured with a short position of Blackrock Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Blackrock Muniholdings.

Diversification Opportunities for Carlyle Secured and Blackrock Muniholdings

0.55

Correlation Coefficient

Carlyle Secured  Blackrock Muniholdings

Very weak diversification

The 3 months correlation between Carlyle and Blackrock is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending and Blackrock Muniholdings Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings and Carlyle Secured 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 Secured Lending are associated (or correlated) with Blackrock Muniholdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniholdings has no effect on the direction of Carlyle Secured i.e., Carlyle Secured and Blackrock Muniholdings go up and down completely randomly.

Pair Corralation between Carlyle Secured and Blackrock Muniholdings

Given the investment horizon of 90 days Carlyle Secured Lending is expected to under-perform the Blackrock Muniholdings. In addition to that, Carlyle Secured is 1.35 times more volatile than Blackrock Muniholdings Closed. It trades about -0.33 of its total potential returns per unit of risk. Blackrock Muniholdings Closed is currently generating about -0.21 per unit of volatility. If you would invest  1,255  in Blackrock Muniholdings Closed on August 20, 2024 and sell it today you would lose (44.00) from holding Blackrock Muniholdings Closed or give up 3.51% of portfolio value over 90 days.

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

Carlyle Secured Lending  vs.  Blackrock Muniholdings Closed

Carlyle Secured Lending

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Carlyle Secured Lending are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, Carlyle Secured is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Blackrock Muniholdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Muniholdings Closed has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical indicators, Blackrock Muniholdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Carlyle Secured and Blackrock Muniholdings

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

The idea behind Carlyle Secured Lending and Blackrock Muniholdings Closed 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.