Correlation Between Barrett Business and Galaxy Payroll
Can any of the company-specific risk be diversified away by investing in both Barrett Business and Galaxy Payroll 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 Barrett Business and Galaxy Payroll into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrett Business Services and Galaxy Payroll Group, you can compare the effects of market volatilities on Barrett Business and Galaxy Payroll 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 Barrett Business with a short position of Galaxy Payroll. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrett Business and Galaxy Payroll.
Diversification Opportunities for Barrett Business and Galaxy Payroll
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barrett and Galaxy is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Barrett Business Services and Galaxy Payroll Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Payroll Group and Barrett Business 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 Barrett Business Services are associated (or correlated) with Galaxy Payroll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Payroll Group has no effect on the direction of Barrett Business i.e., Barrett Business and Galaxy Payroll go up and down completely randomly.
Pair Corralation between Barrett Business and Galaxy Payroll
Given the investment horizon of 90 days Barrett Business Services is expected to generate 0.1 times more return on investment than Galaxy Payroll. However, Barrett Business Services is 9.99 times less risky than Galaxy Payroll. It trades about 0.41 of its potential returns per unit of risk. Galaxy Payroll Group is currently generating about -0.4 per unit of risk. If you would invest 3,665 in Barrett Business Services on September 4, 2024 and sell it today you would earn a total of 685.00 from holding Barrett Business Services or generate 18.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrett Business Services vs. Galaxy Payroll Group
Performance |
| Timeline |
| Barrett Business Services |
| Galaxy Payroll Group |
Barrett Business and Galaxy Payroll Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrett Business and Galaxy Payroll
The main advantage of trading using opposite Barrett Business and Galaxy Payroll positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrett Business position performs unexpectedly, Galaxy Payroll 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 Galaxy Payroll will offset losses from the drop in Galaxy Payroll's long position.| Barrett Business vs. Korn Ferry | Barrett Business vs. Kelly Services A | Barrett Business vs. Kforce Inc | Barrett Business vs. Hudson Global |
| Galaxy Payroll vs. BorgWarner | Galaxy Payroll vs. Wabash National | Galaxy Payroll vs. JBG SMITH Properties | Galaxy Payroll vs. Gentex |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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