Correlation Between Barings BDC and KWG Group
Can any of the company-specific risk be diversified away by investing in both Barings BDC and KWG Group 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 KWG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and KWG Group Holdings, you can compare the effects of market volatilities on Barings BDC and KWG Group 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 KWG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and KWG Group.
Diversification Opportunities for Barings BDC and KWG Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and KWG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and KWG Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KWG Group 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 KWG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KWG Group Holdings has no effect on the direction of Barings BDC i.e., Barings BDC and KWG Group go up and down completely randomly.
Pair Corralation between Barings BDC and KWG Group
If you would invest 966.00 in Barings BDC on September 1, 2024 and sell it today you would earn a total of 58.00 from holding Barings BDC or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Barings BDC vs. KWG Group Holdings
Performance |
| Timeline |
| Barings BDC |
| KWG Group Holdings |
Barings BDC and KWG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and KWG Group
The main advantage of trading using opposite Barings BDC and KWG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, KWG Group 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 KWG Group will offset losses from the drop in KWG Group's long position.| Barings BDC vs. Visa Class A | Barings BDC vs. Diamond Hill Investment | Barings BDC vs. Distoken Acquisition | Barings BDC vs. Associated Capital Group |
| KWG Group vs. Viemed Healthcare | KWG Group vs. Merit Medical Systems | KWG Group vs. Alvotech | KWG Group vs. Akanda Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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