Correlation Between ArcelorMittal and Barings BDC
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By analyzing existing cross correlation between ArcelorMittal 455 percent and Barings BDC, you can compare the effects of market volatilities on ArcelorMittal 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 ArcelorMittal with a short position of Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcelorMittal and Barings BDC.
Diversification Opportunities for ArcelorMittal and Barings BDC
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ArcelorMittal and Barings is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal 455 percent and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC and ArcelorMittal 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 ArcelorMittal 455 percent 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 ArcelorMittal i.e., ArcelorMittal and Barings BDC go up and down completely randomly.
Pair Corralation between ArcelorMittal and Barings BDC
Assuming the 90 days trading horizon ArcelorMittal 455 percent is expected to under-perform the Barings BDC. In addition to that, ArcelorMittal is 1.27 times more volatile than Barings BDC. It trades about -0.04 of its total potential returns per unit of risk. Barings BDC is currently generating about 0.45 per unit of volatility. If you would invest 941.00 in Barings BDC on September 4, 2024 and sell it today you would earn a total of 92.00 from holding Barings BDC or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
ArcelorMittal 455 percent vs. Barings BDC
Performance |
| Timeline |
| ArcelorMittal 455 percent |
| Barings BDC |
ArcelorMittal and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArcelorMittal and Barings BDC
The main advantage of trading using opposite ArcelorMittal and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcelorMittal 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.| ArcelorMittal vs. Barings BDC | ArcelorMittal vs. Western Union Co | ArcelorMittal vs. CECO Environmental Corp | ArcelorMittal vs. Mill City Ventures |
| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
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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