Correlation Between Barings BDC and Advanced Health
Can any of the company-specific risk be diversified away by investing in both Barings BDC and Advanced Health 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 Advanced Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and Advanced Health Intelligence, you can compare the effects of market volatilities on Barings BDC and Advanced Health 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 Advanced Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Advanced Health.
Diversification Opportunities for Barings BDC and Advanced Health
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Advanced is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte 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 Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of Barings BDC i.e., Barings BDC and Advanced Health go up and down completely randomly.
Pair Corralation between Barings BDC and Advanced Health
If you would invest 967.00 in Barings BDC on September 1, 2024 and sell it today you would earn a total of 57.00 from holding Barings BDC or generate 5.89% 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. Advanced Health Intelligence
Performance |
| Timeline |
| Barings BDC |
| Advanced Health Inte |
Barings BDC and Advanced Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Advanced Health
The main advantage of trading using opposite Barings BDC and Advanced Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, Advanced Health 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 Advanced Health will offset losses from the drop in Advanced Health'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 |
| Advanced Health vs. Sphere Entertainment Co | Advanced Health vs. Alvotech | Advanced Health vs. Anterix | Advanced Health vs. Sonida Senior Living |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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