Correlation Between Barings BDC and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Barings BDC and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and Siriuspoint, you can compare the effects of market volatilities on Barings BDC and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Siriuspoint.
Diversification Opportunities for Barings BDC and Siriuspoint
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Siriuspoint is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Barings BDC i.e., Barings BDC and Siriuspoint go up and down completely randomly.
Pair Corralation between Barings BDC and Siriuspoint
Given the investment horizon of 90 days Barings BDC is expected to generate 4.43 times less return on investment than Siriuspoint. But when comparing it to its historical volatility, Barings BDC is 2.18 times less risky than Siriuspoint. It trades about 0.12 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,359 in Siriuspoint on August 28, 2024 and sell it today you would earn a total of 201.00 from holding Siriuspoint or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barings BDC vs. Siriuspoint
Performance |
| Timeline |
| Barings BDC |
| Siriuspoint |
Barings BDC and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Siriuspoint
The main advantage of trading using opposite Barings BDC and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Barings BDC vs. PowerUp Acquisition Corp | Barings BDC vs. Aurora Innovation | Barings BDC vs. HUMANA INC | Barings BDC vs. Aquagold International |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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