Correlation Between Barings BDC and Frontier Energy
Can any of the company-specific risk be diversified away by investing in both Barings BDC and Frontier Energy 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 Frontier Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and Frontier Energy Corp, you can compare the effects of market volatilities on Barings BDC and Frontier Energy 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 Frontier Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Frontier Energy.
Diversification Opportunities for Barings BDC and Frontier Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Frontier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and Frontier Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Energy Corp 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 Frontier Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Energy Corp has no effect on the direction of Barings BDC i.e., Barings BDC and Frontier Energy go up and down completely randomly.
Pair Corralation between Barings BDC and Frontier Energy
If you would invest 830.00 in Barings BDC on August 28, 2024 and sell it today you would earn a total of 190.00 from holding Barings BDC or generate 22.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings BDC vs. Frontier Energy Corp
Performance |
| Timeline |
| Barings BDC |
| Frontier Energy Corp |
Barings BDC and Frontier Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Frontier Energy
The main advantage of trading using opposite Barings BDC and Frontier Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, Frontier Energy 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 Frontier Energy will offset losses from the drop in Frontier Energy's long position.| Barings BDC vs. PowerUp Acquisition Corp | Barings BDC vs. Aurora Innovation | Barings BDC vs. HUMANA INC | Barings BDC vs. Aquagold International |
| Frontier Energy vs. Helmerich and Payne | Frontier Energy vs. Noble plc | Frontier Energy vs. Nabors Industries | Frontier Energy vs. Precision Drilling |
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 CEOs Directory module to screen CEOs from public companies around the world.
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