Correlation Between Barnes and PAX Global
Can any of the company-specific risk be diversified away by investing in both Barnes and PAX Global 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 PAX Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and PAX Global Technology, you can compare the effects of market volatilities on Barnes and PAX Global 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 PAX Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and PAX Global.
Diversification Opportunities for Barnes and PAX Global
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barnes and PAX is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and PAX Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAX Global Technology 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 PAX Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAX Global Technology has no effect on the direction of Barnes i.e., Barnes and PAX Global go up and down completely randomly.
Pair Corralation between Barnes and PAX Global
If you would invest 4,748 in Barnes Group on January 5, 2025 and sell it today you would earn a total of 0.00 from holding Barnes Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Barnes Group vs. PAX Global Technology
Performance |
| Timeline |
| Barnes Group |
Risk-Adjusted Performance
Excellent
Weak | Strong |
| PAX Global Technology |
Barnes and PAX Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and PAX Global
The main advantage of trading using opposite Barnes and PAX Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, PAX Global 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 PAX Global will offset losses from the drop in PAX Global's long position.| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
| PAX Global vs. Ricoh Company | PAX Global vs. Kawasaki Heavy Industries | PAX Global vs. Kajima Corp ADR | PAX Global vs. Nitto Denko Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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