Correlation Between Original Bark and Target
Can any of the company-specific risk be diversified away by investing in both Original Bark and Target 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 Original Bark and Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Original Bark Co and Target, you can compare the effects of market volatilities on Original Bark and Target 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 Original Bark with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Original Bark and Target.
Diversification Opportunities for Original Bark and Target
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Original and Target is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Original Bark Co and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target and Original Bark 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 Original Bark Co are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of Original Bark i.e., Original Bark and Target go up and down completely randomly.
Pair Corralation between Original Bark and Target
Given the investment horizon of 90 days Original Bark Co is expected to generate 1.91 times more return on investment than Target. However, Original Bark is 1.91 times more volatile than Target. It trades about 0.11 of its potential returns per unit of risk. Target is currently generating about 0.01 per unit of risk. If you would invest 77.00 in Original Bark Co on September 2, 2024 and sell it today you would earn a total of 139.00 from holding Original Bark Co or generate 180.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Original Bark Co vs. Target
Performance |
| Timeline |
| Original Bark |
| Target |
Original Bark and Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Original Bark and Target
The main advantage of trading using opposite Original Bark and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Original Bark position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.| Original Bark vs. Alcon AG | Original Bark vs. The Cooper Companies, | Original Bark vs. AngioDynamics | Original Bark vs. AptarGroup |
| Target vs. Costco Wholesale Corp | Target vs. BJs Wholesale Club | Target vs. Dollar Tree | Target vs. Dollar General |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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