Correlation Between Barnes and Wheels Up
Can any of the company-specific risk be diversified away by investing in both Barnes and Wheels Up 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 Wheels Up into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and Wheels Up Experience, you can compare the effects of market volatilities on Barnes and Wheels Up 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 Wheels Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and Wheels Up.
Diversification Opportunities for Barnes and Wheels Up
Pay attention - limited upside
The 3 months correlation between Barnes and Wheels is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and Wheels Up Experience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheels Up Experience 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 Wheels Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheels Up Experience has no effect on the direction of Barnes i.e., Barnes and Wheels Up go up and down completely randomly.
Pair Corralation between Barnes and Wheels Up
Taking into account the 90-day investment horizon Barnes Group is expected to generate 0.02 times more return on investment than Wheels Up. However, Barnes Group is 40.96 times less risky than Wheels Up. It trades about 0.36 of its potential returns per unit of risk. Wheels Up Experience is currently generating about -0.05 per unit of risk. If you would invest 4,726 in Barnes Group on November 2, 2024 and sell it today you would earn a total of 22.00 from holding Barnes Group or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Barnes Group vs. Wheels Up Experience
Performance |
| Timeline |
| Barnes Group |
| Wheels Up Experience |
Barnes and Wheels Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and Wheels Up
The main advantage of trading using opposite Barnes and Wheels Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, Wheels Up 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 Wheels Up will offset losses from the drop in Wheels Up's long position.| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
| Wheels Up vs. Blade Air Mobility | Wheels Up vs. Clear Secure | Wheels Up vs. Archer Aviation | Wheels Up vs. Beauty Health Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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