Correlation Between Barnes and Multi Ways
Can any of the company-specific risk be diversified away by investing in both Barnes and Multi Ways 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 Multi Ways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and Multi Ways Holdings, you can compare the effects of market volatilities on Barnes and Multi Ways 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 Multi Ways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and Multi Ways.
Diversification Opportunities for Barnes and Multi Ways
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barnes and Multi is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and Multi Ways Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Ways Holdings 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 Multi Ways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Ways Holdings has no effect on the direction of Barnes i.e., Barnes and Multi Ways go up and down completely randomly.
Pair Corralation between Barnes and Multi Ways
Taking into account the 90-day investment horizon Barnes Group is expected to generate 0.03 times more return on investment than Multi Ways. However, Barnes Group is 28.63 times less risky than Multi Ways. It trades about 0.43 of its potential returns per unit of risk. Multi Ways Holdings is currently generating about 0.01 per unit of risk. If you would invest 4,669 in Barnes Group on September 18, 2024 and sell it today you would earn a total of 48.00 from holding Barnes Group or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barnes Group vs. Multi Ways Holdings
Performance |
| Timeline |
| Barnes Group |
| Multi Ways Holdings |
Barnes and Multi Ways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and Multi Ways
The main advantage of trading using opposite Barnes and Multi Ways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, Multi Ways 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 Multi Ways will offset losses from the drop in Multi Ways' long position.| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |