Correlation Between Barings BDC and TuHURA Biosciences
Can any of the company-specific risk be diversified away by investing in both Barings BDC and TuHURA Biosciences 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 TuHURA Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and TuHURA Biosciences, you can compare the effects of market volatilities on Barings BDC and TuHURA Biosciences 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 TuHURA Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and TuHURA Biosciences.
Diversification Opportunities for Barings BDC and TuHURA Biosciences
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and TuHURA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and TuHURA Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TuHURA Biosciences 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 TuHURA Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TuHURA Biosciences has no effect on the direction of Barings BDC i.e., Barings BDC and TuHURA Biosciences go up and down completely randomly.
Pair Corralation between Barings BDC and TuHURA Biosciences
Given the investment horizon of 90 days Barings BDC is expected to generate 0.12 times more return on investment than TuHURA Biosciences. However, Barings BDC is 8.68 times less risky than TuHURA Biosciences. It trades about 0.06 of its potential returns per unit of risk. TuHURA Biosciences is currently generating about -0.02 per unit of risk. If you would invest 700.00 in Barings BDC on October 22, 2024 and sell it today you would earn a total of 270.00 from holding Barings BDC or generate 38.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings BDC vs. TuHURA Biosciences
Performance |
| Timeline |
| Barings BDC |
| TuHURA Biosciences |
Barings BDC and TuHURA Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and TuHURA Biosciences
The main advantage of trading using opposite Barings BDC and TuHURA Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, TuHURA Biosciences 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 TuHURA Biosciences will offset losses from the drop in TuHURA Biosciences' long position.| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
| TuHURA Biosciences vs. Philip Morris International | TuHURA Biosciences vs. Ispire Technology Common | TuHURA Biosciences vs. Willamette Valley Vineyards | TuHURA Biosciences vs. TPG Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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