Correlation Between Kinetik Holdings and Barings BDC

Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings 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 Kinetik Holdings and Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kinetik Holdings and Barings BDC, you can compare the effects of market volatilities on Kinetik Holdings 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 Kinetik Holdings with a short position of Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Barings BDC.

Diversification Opportunities for Kinetik Holdings and Barings BDC

-0.11

Correlation Coefficient

Kinetik Holdings  Barings BDC

Good diversification

The 3 months correlation between Kinetik and Barings is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC and Kinetik Holdings 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 Kinetik 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 Kinetik Holdings i.e., Kinetik Holdings and Barings BDC go up and down completely randomly.

Pair Corralation between Kinetik Holdings and Barings BDC

Given the investment horizon of 90 days Kinetik Holdings is expected to generate 1.12 times less return on investment than Barings BDC. In addition to that, Kinetik Holdings is 2.17 times more volatile than Barings BDC. It trades about 0.06 of its total potential returns per unit of risk. Barings BDC is currently generating about 0.16 per unit of volatility. If you would invest  834.00  in Barings BDC on May 6, 2025 and sell it today you would earn a total of  84.00  from holding Barings BDC or generate 10.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Kinetik Holdings  vs.  Barings BDC

Kinetik Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetik Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Kinetik Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Barings BDC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Barings BDC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting fundamental indicators, Barings BDC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Kinetik Holdings and Barings BDC

The main advantage of trading using opposite Kinetik Holdings and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings 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.

The idea behind Kinetik Holdings and Barings BDC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.