Correlation Between Barings BDC and Navient Corp
Can any of the company-specific risk be diversified away by investing in both Barings BDC and Navient Corp 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 Navient Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and Navient Corp, you can compare the effects of market volatilities on Barings BDC and Navient Corp 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 Navient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Navient Corp.
Diversification Opportunities for Barings BDC and Navient Corp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barings and Navient is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and Navient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navient 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 Navient Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navient Corp has no effect on the direction of Barings BDC i.e., Barings BDC and Navient Corp go up and down completely randomly.
Pair Corralation between Barings BDC and Navient Corp
Given the investment horizon of 90 days Barings BDC is expected to generate 0.38 times more return on investment than Navient Corp. However, Barings BDC is 2.66 times less risky than Navient Corp. It trades about 0.2 of its potential returns per unit of risk. Navient Corp is currently generating about 0.03 per unit of risk. If you would invest 975.00 in Barings BDC on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Barings BDC or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings BDC vs. Navient Corp
Performance |
| Timeline |
| Barings BDC |
| Navient Corp |
Barings BDC and Navient Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Navient Corp
The main advantage of trading using opposite Barings BDC and Navient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, Navient Corp 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 Navient Corp will offset losses from the drop in Navient Corp's long position.| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
| Navient Corp vs. 360 Finance | Navient Corp vs. Atlanticus Holdings | Navient Corp vs. X Financial Class | Navient Corp vs. LendingClub 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |