Correlation Between Barnes and Expeditors International
Can any of the company-specific risk be diversified away by investing in both Barnes and Expeditors International 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 Barnes and Expeditors International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and Expeditors International of, you can compare the effects of market volatilities on Barnes and Expeditors International 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 Barnes with a short position of Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and Expeditors International.
Diversification Opportunities for Barnes and Expeditors International
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barnes and Expeditors is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and Barnes 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 Barnes Group are associated (or correlated) with Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of Barnes i.e., Barnes and Expeditors International go up and down completely randomly.
Pair Corralation between Barnes and Expeditors International
Taking into account the 90-day investment horizon Barnes Group is expected to generate 1.84 times more return on investment than Expeditors International. However, Barnes is 1.84 times more volatile than Expeditors International of. It trades about 0.02 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.01 per unit of risk. If you would invest 4,317 in Barnes Group on November 1, 2024 and sell it today you would earn a total of 431.00 from holding Barnes Group or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Barnes Group vs. Expeditors International of
Performance |
| Timeline |
| Barnes Group |
| Expeditors International |
Barnes and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and Expeditors International
The main advantage of trading using opposite Barnes and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International's long position.| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
| Expeditors International vs. Landstar System | Expeditors International vs. JB Hunt Transport | Expeditors International vs. Hub Group | Expeditors International vs. Forward Air |
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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