Correlation Between Triplepoint Venture and Bain Capital
Can any of the company-specific risk be diversified away by investing in both Triplepoint Venture 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 Triplepoint Venture and Bain Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triplepoint Venture Growth and Bain Capital Specialty, you can compare the effects of market volatilities on Triplepoint Venture 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 Triplepoint Venture with a short position of Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triplepoint Venture and Bain Capital.
Diversification Opportunities for Triplepoint Venture and Bain Capital
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Triplepoint and Bain is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Triplepoint Venture Growth 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 Triplepoint Venture 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 Triplepoint Venture Growth 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 Triplepoint Venture i.e., Triplepoint Venture and Bain Capital go up and down completely randomly.
Pair Corralation between Triplepoint Venture and Bain Capital
Given the investment horizon of 90 days Triplepoint Venture is expected to generate 13.32 times less return on investment than Bain Capital. In addition to that, Triplepoint Venture is 1.87 times more volatile than Bain Capital Specialty. It trades about 0.02 of its total potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.44 per unit of volatility. If you would invest 1,555 in Bain Capital Specialty on February 4, 2024 and sell it today you would earn a total of 106.00 from holding Bain Capital Specialty or generate 6.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Triplepoint Venture Growth vs. Bain Capital Specialty
Performance |
Timeline |
Triplepoint Venture |
Bain Capital Specialty |
Triplepoint Venture and Bain Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Triplepoint Venture and Bain Capital
The main advantage of trading using opposite Triplepoint Venture and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triplepoint Venture 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.Triplepoint Venture vs. BlackRock TCP Capital | Triplepoint Venture vs. Sixth Street Specialty | Triplepoint Venture vs. Golub Capital BDC | Triplepoint Venture 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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