Correlation Between Barings BDC and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Barings BDC and Siam Cement 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 Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and The Siam Cement, you can compare the effects of market volatilities on Barings BDC and Siam Cement 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 Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Siam Cement.
Diversification Opportunities for Barings BDC and Siam Cement
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and Siam is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement 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 Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of Barings BDC i.e., Barings BDC and Siam Cement go up and down completely randomly.
Pair Corralation between Barings BDC and Siam Cement
If you would invest 950.00 in Barings BDC on October 25, 2024 and sell it today you would earn a total of 37.00 from holding Barings BDC or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Barings BDC vs. The Siam Cement
Performance |
| Timeline |
| Barings BDC |
| Siam Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings BDC and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Siam Cement
The main advantage of trading using opposite Barings BDC and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, Siam Cement 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 Siam Cement will offset losses from the drop in Siam Cement'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 |
| Siam Cement vs. Ubisoft Entertainment | Siam Cement vs. Barings BDC | Siam Cement vs. Academy Sports Outdoors | Siam Cement vs. Univest Pennsylvania |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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