Correlation Between Barnes and QEP
Can any of the company-specific risk be diversified away by investing in both Barnes and QEP 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 QEP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and QEP Co Inc, you can compare the effects of market volatilities on Barnes and QEP 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 QEP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and QEP.
Diversification Opportunities for Barnes and QEP
Excellent diversification
The 3 months correlation between Barnes and QEP is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and QEP Co Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QEP Co Inc 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 QEP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QEP Co Inc has no effect on the direction of Barnes i.e., Barnes and QEP go up and down completely randomly.
Pair Corralation between Barnes and QEP
If you would invest 4,678 in Barnes Group on August 28, 2024 and sell it today you would earn a total of 12.00 from holding Barnes Group or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barnes Group vs. QEP Co Inc
Performance |
| Timeline |
| Barnes Group |
| QEP Co Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barnes and QEP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and QEP
The main advantage of trading using opposite Barnes and QEP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, QEP 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 QEP will offset losses from the drop in QEP's long position.| Barnes vs. Aquagold International | Barnes vs. Morningstar Unconstrained Allocation | Barnes vs. High Yield Municipal Fund | Barnes vs. Thrivent High Yield |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |