Correlation Between Barings BDC and Niagara Mohawk
Can any of the company-specific risk be diversified away by investing in both Barings BDC and Niagara Mohawk 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 Niagara Mohawk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and Niagara Mohawk Power, you can compare the effects of market volatilities on Barings BDC and Niagara Mohawk 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 Niagara Mohawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Niagara Mohawk.
Diversification Opportunities for Barings BDC and Niagara Mohawk
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barings and Niagara is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and Niagara Mohawk Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niagara Mohawk Power 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 Niagara Mohawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niagara Mohawk Power has no effect on the direction of Barings BDC i.e., Barings BDC and Niagara Mohawk go up and down completely randomly.
Pair Corralation between Barings BDC and Niagara Mohawk
If you would invest 959.00 in Barings BDC on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Barings BDC or generate 6.78% 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. Niagara Mohawk Power
Performance |
| Timeline |
| Barings BDC |
| Niagara Mohawk Power |
Barings BDC and Niagara Mohawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Niagara Mohawk
The main advantage of trading using opposite Barings BDC and Niagara Mohawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, Niagara Mohawk 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 Niagara Mohawk will offset losses from the drop in Niagara Mohawk'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 |
| Niagara Mohawk vs. The Wendys Co | Niagara Mohawk vs. Dana Inc | Niagara Mohawk vs. Tesla Inc | Niagara Mohawk vs. Wabash National |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |