Correlation Between Astar and Bain Capital
Can any of the company-specific risk be diversified away by investing in both Astar and Bain Capital 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 Astar and Bain Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and Bain Capital Specialty, you can compare the effects of market volatilities on Astar and Bain Capital 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 Astar with a short position of Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Bain Capital.
Diversification Opportunities for Astar and Bain Capital
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astar and Bain is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Bain Capital Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bain Capital Specialty and Astar 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 Astar are associated (or correlated) with Bain Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bain Capital Specialty has no effect on the direction of Astar i.e., Astar and Bain Capital go up and down completely randomly.
Pair Corralation between Astar and Bain Capital
Assuming the 90 days trading horizon Astar is expected to under-perform the Bain Capital. In addition to that, Astar is 4.65 times more volatile than Bain Capital Specialty. It trades about -0.26 of its total potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.19 per unit of volatility. If you would invest 1,757 in Bain Capital Specialty on November 2, 2024 and sell it today you would earn a total of 60.00 from holding Bain Capital Specialty or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Astar vs. Bain Capital Specialty
Performance |
| Timeline |
| Astar |
| Bain Capital Specialty |
Astar and Bain Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Bain Capital
The main advantage of trading using opposite Astar and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Bain Capital 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 Bain Capital will offset losses from the drop in Bain Capital's long position.The idea behind Astar and Bain Capital Specialty 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.| Bain Capital vs. BlackRock TCP Capital | Bain Capital vs. Triplepoint Venture Growth | Bain Capital vs. Sixth Street Specialty | Bain Capital vs. Golub Capital BDC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world |