Correlation Between EQUIFAX and Barings BDC
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By analyzing existing cross correlation between EQUIFAX INC 7 and Barings BDC, you can compare the effects of market volatilities on EQUIFAX 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 EQUIFAX with a short position of Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQUIFAX and Barings BDC.
Diversification Opportunities for EQUIFAX and Barings BDC
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EQUIFAX and Barings is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding EQUIFAX INC 7 and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC and EQUIFAX 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 EQUIFAX INC 7 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 EQUIFAX i.e., EQUIFAX and Barings BDC go up and down completely randomly.
Pair Corralation between EQUIFAX and Barings BDC
Assuming the 90 days trading horizon EQUIFAX INC 7 is expected to under-perform the Barings BDC. In addition to that, EQUIFAX is 1.56 times more volatile than Barings BDC. It trades about -0.13 of its total potential returns per unit of risk. Barings BDC is currently generating about 0.08 per unit of volatility. If you would invest 982.00 in Barings BDC on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Barings BDC or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.88% |
| Values | Daily Returns |
EQUIFAX INC 7 vs. Barings BDC
Performance |
| Timeline |
| EQUIFAX INC 7 |
| Barings BDC |
EQUIFAX and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQUIFAX and Barings BDC
The main advantage of trading using opposite EQUIFAX and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQUIFAX 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.| EQUIFAX vs. Barings BDC | EQUIFAX vs. Air Lease | EQUIFAX vs. Commonwealth Bank of | EQUIFAX vs. Univest Pennsylvania |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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