Correlation Between Barings BDC and ORACLE
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By analyzing existing cross correlation between Barings BDC and ORACLE P 295, you can compare the effects of market volatilities on Barings BDC and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and ORACLE.
Diversification Opportunities for Barings BDC and ORACLE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barings and ORACLE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC and ORACLE P 295 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE P 295 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE P 295 has no effect on the direction of Barings BDC i.e., Barings BDC and ORACLE go up and down completely randomly.
Pair Corralation between Barings BDC and ORACLE
Given the investment horizon of 90 days Barings BDC is expected to generate 2.23 times more return on investment than ORACLE. However, Barings BDC is 2.23 times more volatile than ORACLE P 295. It trades about 0.08 of its potential returns per unit of risk. ORACLE P 295 is currently generating about 0.01 per unit of risk. If you would invest 914.00 in Barings BDC on September 3, 2024 and sell it today you would earn a total of 110.00 from holding Barings BDC or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.78% |
| Values | Daily Returns |
Barings BDC vs. ORACLE P 295
Performance |
| Timeline |
| Barings BDC |
| ORACLE P 295 |
Barings BDC and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and ORACLE
The main advantage of trading using opposite Barings BDC and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE'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 |
| ORACLE vs. Barings BDC | ORACLE vs. Porvair plc | ORACLE vs. Mayfair Gold Corp | ORACLE vs. Ryanair Holdings PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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