Correlation Between Barnes and Xometry
Can any of the company-specific risk be diversified away by investing in both Barnes and Xometry 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 Xometry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Group and Xometry, you can compare the effects of market volatilities on Barnes and Xometry 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 Xometry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and Xometry.
Diversification Opportunities for Barnes and Xometry
Poor diversification
The 3 months correlation between Barnes and Xometry is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and Xometry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xometry 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 Xometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xometry has no effect on the direction of Barnes i.e., Barnes and Xometry go up and down completely randomly.
Pair Corralation between Barnes and Xometry
Taking into account the 90-day investment horizon Barnes Group is expected to generate 0.02 times more return on investment than Xometry. However, Barnes Group is 63.45 times less risky than Xometry. It trades about 0.23 of its potential returns per unit of risk. Xometry is currently generating about -0.08 per unit of risk. If you would invest 4,711 in Barnes Group on October 15, 2024 and sell it today you would earn a total of 16.00 from holding Barnes Group or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Barnes Group vs. Xometry
Performance |
| Timeline |
| Barnes Group |
| Xometry |
Barnes and Xometry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barnes and Xometry
The main advantage of trading using opposite Barnes and Xometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, Xometry 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 Xometry will offset losses from the drop in Xometry's long position.| Barnes vs. Helios Technologies | Barnes vs. Enpro Industries | Barnes vs. Omega Flex | Barnes vs. Luxfer Holdings PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |