Correlation Between Barfresh Food and Flow Beverage
Can any of the company-specific risk be diversified away by investing in both Barfresh Food and Flow Beverage 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 Flow Beverage 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 Flow Beverage Corp, you can compare the effects of market volatilities on Barfresh Food and Flow Beverage 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 Flow Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barfresh Food and Flow Beverage.
Diversification Opportunities for Barfresh Food and Flow Beverage
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barfresh and Flow is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Barfresh Food Group and Flow Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Beverage Corp 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 Flow Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Beverage Corp has no effect on the direction of Barfresh Food i.e., Barfresh Food and Flow Beverage go up and down completely randomly.
Pair Corralation between Barfresh Food and Flow Beverage
Given the investment horizon of 90 days Barfresh Food Group is expected to generate 0.87 times more return on investment than Flow Beverage. However, Barfresh Food Group is 1.14 times less risky than Flow Beverage. It trades about 0.33 of its potential returns per unit of risk. Flow Beverage Corp is currently generating about -0.17 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 | 100.0% |
| Values | Daily Returns |
Barfresh Food Group vs. Flow Beverage Corp
Performance |
| Timeline |
| Barfresh Food Group |
| Flow Beverage Corp |
Barfresh Food and Flow Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barfresh Food and Flow Beverage
The main advantage of trading using opposite Barfresh Food and Flow Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barfresh Food position performs unexpectedly, Flow Beverage 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 Flow Beverage will offset losses from the drop in Flow Beverage'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 |
| Flow Beverage vs. National Beverage Corp | Flow Beverage vs. Vita Coco | Flow Beverage vs. Hill Street Beverage | Flow Beverage vs. Alkame Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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