Correlation Between Kraft Heinz and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz and Barings BDC 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 Kraft Heinz and Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and Barings BDC, you can compare the effects of market volatilities on Kraft Heinz and Barings BDC 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 Kraft Heinz with a short position of Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Barings BDC.
Diversification Opportunities for Kraft Heinz and Barings BDC
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kraft and Barings is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC and Kraft Heinz 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 Kraft Heinz Co are associated (or correlated) with Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Kraft Heinz i.e., Kraft Heinz and Barings BDC go up and down completely randomly.
Pair Corralation between Kraft Heinz and Barings BDC
Considering the 90-day investment horizon Kraft Heinz Co is expected to under-perform the Barings BDC. In addition to that, Kraft Heinz is 1.33 times more volatile than Barings BDC. It trades about -0.05 of its total potential returns per unit of risk. Barings BDC is currently generating about 0.07 per unit of volatility. If you would invest 950.00 in Barings BDC on November 27, 2024 and sell it today you would earn a total of 72.00 from holding Barings BDC or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Barings BDC
Performance |
| Timeline |
| Kraft Heinz |
| Barings BDC |
Kraft Heinz and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Barings BDC
The main advantage of trading using opposite Kraft Heinz and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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