Correlation Between Barfresh Food and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Barfresh Food and Carlsberg 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 Barfresh Food and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barfresh Food Group and Carlsberg AS, you can compare the effects of market volatilities on Barfresh Food and Carlsberg 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 Barfresh Food with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barfresh Food and Carlsberg.
Diversification Opportunities for Barfresh Food and Carlsberg
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barfresh and Carlsberg is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Barfresh Food Group and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Barfresh Food 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 Barfresh Food Group are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Barfresh Food i.e., Barfresh Food and Carlsberg go up and down completely randomly.
Pair Corralation between Barfresh Food and Carlsberg
Given the investment horizon of 90 days Barfresh Food Group is expected to generate 2.83 times more return on investment than Carlsberg. However, Barfresh Food is 2.83 times more volatile than Carlsberg AS. It trades about 0.32 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.21 per unit of risk. If you would invest 203.00 in Barfresh Food Group on August 28, 2024 and sell it today you would earn a total of 84.00 from holding Barfresh Food Group or generate 41.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barfresh Food Group vs. Carlsberg AS
Performance |
| Timeline |
| Barfresh Food Group |
| Carlsberg AS |
Barfresh Food and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barfresh Food and Carlsberg
The main advantage of trading using opposite Barfresh Food and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barfresh Food position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Barfresh Food vs. Flow Beverage Corp | Barfresh Food vs. Fbec Worldwide | Barfresh Food vs. Hill Street Beverage | Barfresh Food vs. Eq Energy Drink |
| Carlsberg vs. Suntory Beverage Food | Carlsberg vs. Asahi Group Holdings | Carlsberg vs. Compania Cervecerias Unidas | Carlsberg vs. Heineken NV |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |