Correlation Between Barings BDC and 04685A2U4

Can any of the company-specific risk be diversified away by investing in both Barings BDC and 04685A2U4 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 Barings BDC and 04685A2U4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Barings BDC and ATH 145 08 JAN 26, you can compare the effects of market volatilities on Barings BDC and 04685A2U4 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 Barings BDC with a short position of 04685A2U4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and 04685A2U4.

Diversification Opportunities for Barings BDC and 04685A2U4

0.28

Correlation Coefficient

Barings BDC  04685A2U4

Modest diversification

The 3 months correlation between Barings and 04685A2U4 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and ATH 145 08 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATH 145 08 and Barings BDC 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 Barings BDC are associated (or correlated) with 04685A2U4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATH 145 08 has no effect on the direction of Barings BDC i.e., Barings BDC and 04685A2U4 go up and down completely randomly.

Pair Corralation between Barings BDC and 04685A2U4

Given the investment horizon of 90 days Barings BDC is expected to generate 0.73 times more return on investment than 04685A2U4. However, Barings BDC is 1.37 times less risky than 04685A2U4. It trades about -0.02 of its potential returns per unit of risk. ATH 145 08 JAN 26 is currently generating about -0.15 per unit of risk. If you would invest  958.00  in Barings BDC on September 26, 2024 and sell it today you would lose (16.00) from holding Barings BDC or give up 1.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	55.56%
Values	Daily Returns

Barings BDC  vs.  ATH 145 08 JAN 26

Barings BDC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barings BDC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Barings BDC is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

ATH 145 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATH 145 08 JAN 26 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 January 2025. The current disturbance may also be a sign of long term up-swing for ATH 145 08 JAN 26 investors.

Pair Trading with Barings BDC and 04685A2U4

The main advantage of trading using opposite Barings BDC and 04685A2U4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, 04685A2U4 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 04685A2U4 will offset losses from the drop in 04685A2U4's long position.

The idea behind Barings BDC and ATH 145 08 JAN 26 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.