Correlation Between Barnes and Sharing Economy
Can any of the company-specific risk be diversified away by investing in both Barnes and Sharing Economy 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 Sharing Economy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and Sharing Economy International, you can compare the effects of market volatilities on Barnes and Sharing Economy 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 Sharing Economy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and Sharing Economy.
Diversification Opportunities for Barnes and Sharing Economy
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barnes and Sharing is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and Sharing Economy International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharing Economy Inte 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 Sharing Economy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharing Economy Inte has no effect on the direction of Barnes i.e., Barnes and Sharing Economy go up and down completely randomly.
Pair Corralation between Barnes and Sharing Economy
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 Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Barnes Group vs. Sharing Economy International
Performance |
| Timeline |
| Barnes Group |
| Sharing Economy Inte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barnes and Sharing Economy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and Sharing Economy
The main advantage of trading using opposite Barnes and Sharing Economy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, Sharing Economy 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 Sharing Economy will offset losses from the drop in Sharing Economy's long position.| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
| Sharing Economy vs. Fuse Science | Sharing Economy vs. Data443 Risk Mitigation | Sharing Economy vs. Smartmetric | Sharing Economy vs. Taoping |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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