Correlation Between Bain Capital and Brightsphere Investment
Can any of the company-specific risk be diversified away by investing in both Bain Capital and Brightsphere Investment 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 Bain Capital and Brightsphere Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bain Capital Specialty and Brightsphere Investment Group, you can compare the effects of market volatilities on Bain Capital and Brightsphere Investment 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 Bain Capital with a short position of Brightsphere Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bain Capital and Brightsphere Investment.
Diversification Opportunities for Bain Capital and Brightsphere Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bain and Brightsphere is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bain Capital Specialty and Brightsphere Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightsphere Investment and Bain Capital 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 Bain Capital Specialty are associated (or correlated) with Brightsphere Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightsphere Investment has no effect on the direction of Bain Capital i.e., Bain Capital and Brightsphere Investment go up and down completely randomly.
Pair Corralation between Bain Capital and Brightsphere Investment
Given the investment horizon of 90 days Bain Capital Specialty is expected to generate 0.58 times more return on investment than Brightsphere Investment. However, Bain Capital Specialty is 1.73 times less risky than Brightsphere Investment. It trades about 0.13 of its potential returns per unit of risk. Brightsphere Investment Group is currently generating about 0.03 per unit of risk. If you would invest 963.00 in Bain Capital Specialty on November 1, 2024 and sell it today you would earn a total of 854.00 from holding Bain Capital Specialty or generate 88.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.2% |
| Values | Daily Returns |
Bain Capital Specialty vs. Brightsphere Investment Group
Performance |
| Timeline |
| Bain Capital Specialty |
| Brightsphere Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bain Capital and Brightsphere Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bain Capital and Brightsphere Investment
The main advantage of trading using opposite Bain Capital and Brightsphere Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bain Capital position performs unexpectedly, Brightsphere Investment 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 Brightsphere Investment will offset losses from the drop in Brightsphere Investment's long position.| Bain Capital vs. BlackRock TCP Capital | Bain Capital vs. Triplepoint Venture Growth | Bain Capital vs. Sixth Street Specialty | Bain Capital vs. Golub Capital BDC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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