Correlation Between BlackRock TCP and Bain Capital
Can any of the company-specific risk be diversified away by investing in both BlackRock TCP and Bain Capital 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 BlackRock TCP and Bain Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock TCP Capital and Bain Capital Specialty, you can compare the effects of market volatilities on BlackRock TCP and Bain Capital 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 BlackRock TCP with a short position of Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock TCP and Bain Capital.
Diversification Opportunities for BlackRock TCP and Bain Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BlackRock and Bain is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock TCP Capital and Bain Capital Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bain Capital Specialty and BlackRock TCP 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 BlackRock TCP Capital are associated (or correlated) with Bain Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bain Capital Specialty has no effect on the direction of BlackRock TCP i.e., BlackRock TCP and Bain Capital go up and down completely randomly.
Pair Corralation between BlackRock TCP and Bain Capital
Given the investment horizon of 90 days BlackRock TCP Capital is expected to generate 2.72 times more return on investment than Bain Capital. However, BlackRock TCP is 2.72 times more volatile than Bain Capital Specialty. It trades about 0.25 of its potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.03 per unit of risk. If you would invest 816.00 in BlackRock TCP Capital on August 31, 2024 and sell it today you would earn a total of 110.00 from holding BlackRock TCP Capital or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock TCP Capital vs. Bain Capital Specialty
Performance |
| Timeline |
| BlackRock TCP Capital |
| Bain Capital Specialty |
BlackRock TCP and Bain Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock TCP and Bain Capital
The main advantage of trading using opposite BlackRock TCP and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock TCP position performs unexpectedly, Bain Capital 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 Bain Capital will offset losses from the drop in Bain Capital's long position.| BlackRock TCP vs. Triplepoint Venture Growth | BlackRock TCP vs. Sixth Street Specialty | BlackRock TCP vs. Golub Capital BDC | BlackRock TCP vs. New Mountain Finance |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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