Correlation Between KWG Group and Barings BDC
Can any of the company-specific risk be diversified away by investing in both KWG Group 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 KWG Group and Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KWG Group Holdings and Barings BDC, you can compare the effects of market volatilities on KWG Group 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 KWG Group with a short position of Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of KWG Group and Barings BDC.
Diversification Opportunities for KWG Group and Barings BDC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KWG and Barings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KWG Group Holdings and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC and KWG Group 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 KWG Group Holdings 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 KWG Group i.e., KWG Group and Barings BDC go up and down completely randomly.
Pair Corralation between KWG Group and Barings BDC
If you would invest 892.00 in Barings BDC on September 1, 2024 and sell it today you would earn a total of 132.00 from holding Barings BDC or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
KWG Group Holdings vs. Barings BDC
Performance |
| Timeline |
| KWG Group Holdings |
| Barings BDC |
KWG Group and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KWG Group and Barings BDC
The main advantage of trading using opposite KWG Group and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KWG Group 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.| KWG Group vs. Viemed Healthcare | KWG Group vs. Merit Medical Systems | KWG Group vs. Alvotech | KWG Group vs. Akanda Corp |
| Barings BDC vs. Visa Class A | Barings BDC vs. Diamond Hill Investment | Barings BDC vs. Distoken Acquisition | Barings BDC vs. Associated Capital Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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