Correlation Between Barings BDC and Getty Images
Can any of the company-specific risk be diversified away by investing in both Barings BDC and Getty Images 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 Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and Getty Images Holdings, you can compare the effects of market volatilities on Barings BDC and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Getty Images.
Diversification Opportunities for Barings BDC and Getty Images
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barings and Getty is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Barings BDC i.e., Barings BDC and Getty Images go up and down completely randomly.
Pair Corralation between Barings BDC and Getty Images
Given the investment horizon of 90 days Barings BDC is expected to generate 0.26 times more return on investment than Getty Images. However, Barings BDC is 3.78 times less risky than Getty Images. It trades about 0.06 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.01 per unit of risk. If you would invest 721.00 in Barings BDC on August 26, 2024 and sell it today you would earn a total of 280.00 from holding Barings BDC or generate 38.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings BDC vs. Getty Images Holdings
Performance |
| Timeline |
| Barings BDC |
| Getty Images Holdings |
Barings BDC and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Getty Images
The main advantage of trading using opposite Barings BDC and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Barings BDC vs. PowerUp Acquisition Corp | Barings BDC vs. Aurora Innovation | Barings BDC vs. HUMANA INC | Barings BDC vs. Aquagold International |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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