Correlation Between Capstone Green and Barnes
Can any of the company-specific risk be diversified away by investing in both Capstone Green and Barnes 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 Capstone Green and Barnes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Green Energy and Barnes Group, you can compare the effects of market volatilities on Capstone Green and Barnes 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 Capstone Green with a short position of Barnes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Green and Barnes.
Diversification Opportunities for Capstone Green and Barnes
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capstone and Barnes is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Green Energy and Barnes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Group and Capstone Green 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 Capstone Green Energy are associated (or correlated) with Barnes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Group has no effect on the direction of Capstone Green i.e., Capstone Green and Barnes go up and down completely randomly.
Pair Corralation between Capstone Green and Barnes
If you would invest 4,678 in Barnes Group on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Barnes Group or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Capstone Green Energy vs. Barnes Group
Performance |
| Timeline |
| Capstone Green Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barnes Group |
Capstone Green and Barnes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Green and Barnes
The main advantage of trading using opposite Capstone Green and Barnes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Green position performs unexpectedly, Barnes 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 Barnes will offset losses from the drop in Barnes' long position.| Capstone Green vs. Nordson | Capstone Green vs. CVD Equipment | Capstone Green vs. Barnes Group | Capstone Green vs. Ametek Inc |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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