Correlation Between Barnes and JSR
Can any of the company-specific risk be diversified away by investing in both Barnes and JSR 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 JSR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and JSR Corporation, you can compare the effects of market volatilities on Barnes and JSR 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 JSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and JSR.
Diversification Opportunities for Barnes and JSR
Very poor diversification
The 3 months correlation between Barnes and JSR is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and JSR Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSR Corporation 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 JSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSR Corporation has no effect on the direction of Barnes i.e., Barnes and JSR go up and down completely randomly.
Pair Corralation between Barnes and JSR
Taking into account the 90-day investment horizon Barnes Group is expected to generate 5.79 times more return on investment than JSR. However, Barnes is 5.79 times more volatile than JSR Corporation. It trades about 0.11 of its potential returns per unit of risk. JSR Corporation is currently generating about 0.09 per unit of risk. If you would invest 2,799 in Barnes Group on September 2, 2024 and sell it today you would earn a total of 1,885 from holding Barnes Group or generate 67.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 54.84% |
| Values | Daily Returns |
Barnes Group vs. JSR Corp.
Performance |
| Timeline |
| Barnes Group |
| JSR Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barnes and JSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and JSR
The main advantage of trading using opposite Barnes and JSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, JSR 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 JSR will offset losses from the drop in JSR's long position.| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
| JSR vs. Chemours Co | JSR vs. International Flavors Fragrances | JSR vs. Air Products and | JSR vs. PPG Industries |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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