Correlation Between Artisan Partners and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Barings BDC 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 Artisan Partners and Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Partners Asset and Barings BDC, you can compare the effects of market volatilities on Artisan Partners and Barings BDC 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 Artisan Partners with a short position of Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Barings BDC.
Diversification Opportunities for Artisan Partners and Barings BDC
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Barings is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC and Artisan Partners 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 Artisan Partners Asset are associated (or correlated) with Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Artisan Partners i.e., Artisan Partners and Barings BDC go up and down completely randomly.
Pair Corralation between Artisan Partners and Barings BDC
Given the investment horizon of 90 days Artisan Partners Asset is expected to under-perform the Barings BDC. In addition to that, Artisan Partners is 1.74 times more volatile than Barings BDC. It trades about -0.02 of its total potential returns per unit of risk. Barings BDC is currently generating about 0.25 per unit of volatility. If you would invest 951.00 in Barings BDC on October 26, 2024 and sell it today you would earn a total of 38.00 from holding Barings BDC or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Barings BDC
Performance |
| Timeline |
| Artisan Partners Asset |
| Barings BDC |
Artisan Partners and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Barings BDC
The main advantage of trading using opposite Artisan Partners and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Artisan Partners vs. KKR Co LP | Artisan Partners vs. Carlyle Group | Artisan Partners vs. Blackstone Group | Artisan Partners vs. Blue Owl Capital |
| Barings BDC vs. KKR Co LP | Barings BDC vs. Carlyle Group | Barings BDC vs. Blackstone Group | Barings BDC vs. Blue Owl Capital |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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