Correlation Between Barings BDC and EDPPL
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By analyzing existing cross correlation between Barings BDC and EDPPL 171 24 JAN 28, you can compare the effects of market volatilities on Barings BDC and EDPPL 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 EDPPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and EDPPL.
Diversification Opportunities for Barings BDC and EDPPL
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barings and EDPPL is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and EDPPL 171 24 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDPPL 171 24 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 EDPPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDPPL 171 24 has no effect on the direction of Barings BDC i.e., Barings BDC and EDPPL go up and down completely randomly.
Pair Corralation between Barings BDC and EDPPL
Given the investment horizon of 90 days Barings BDC is expected to generate 0.5 times more return on investment than EDPPL. However, Barings BDC is 2.0 times less risky than EDPPL. It trades about 0.37 of its potential returns per unit of risk. EDPPL 171 24 JAN 28 is currently generating about -0.25 per unit of risk. If you would invest 941.00 in Barings BDC on September 5, 2024 and sell it today you would earn a total of 81.00 from holding Barings BDC or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 59.09% |
| Values | Daily Returns |
Barings BDC vs. EDPPL 171 24 JAN 28
Performance |
| Timeline |
| Barings BDC |
| EDPPL 171 24 |
Barings BDC and EDPPL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and EDPPL
The main advantage of trading using opposite Barings BDC and EDPPL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, EDPPL 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 EDPPL will offset losses from the drop in EDPPL'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 |
| EDPPL vs. Minerals Technologies | EDPPL vs. Juniata Valley Financial | EDPPL vs. Barings BDC | EDPPL vs. AmTrust Financial Services |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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