Correlation Between Flow Beverage and Barfresh Food
Can any of the company-specific risk be diversified away by investing in both Flow Beverage and Barfresh Food 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 Flow Beverage and Barfresh Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flow Beverage Corp and Barfresh Food Group, you can compare the effects of market volatilities on Flow Beverage and Barfresh Food 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 Flow Beverage with a short position of Barfresh Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Beverage and Barfresh Food.
Diversification Opportunities for Flow Beverage and Barfresh Food
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flow and Barfresh is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Flow Beverage Corp and Barfresh Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barfresh Food Group and Flow Beverage 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 Flow Beverage Corp are associated (or correlated) with Barfresh Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barfresh Food Group has no effect on the direction of Flow Beverage i.e., Flow Beverage and Barfresh Food go up and down completely randomly.
Pair Corralation between Flow Beverage and Barfresh Food
Assuming the 90 days horizon Flow Beverage is expected to generate 4.97 times less return on investment than Barfresh Food. In addition to that, Flow Beverage is 1.25 times more volatile than Barfresh Food Group. It trades about 0.01 of its total potential returns per unit of risk. Barfresh Food Group is currently generating about 0.04 per unit of volatility. If you would invest 352.00 in Barfresh Food Group on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Barfresh Food Group or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Flow Beverage Corp vs. Barfresh Food Group
Performance |
| Timeline |
| Flow Beverage Corp |
| Barfresh Food Group |
Flow Beverage and Barfresh Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Beverage and Barfresh Food
The main advantage of trading using opposite Flow Beverage and Barfresh Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Beverage position performs unexpectedly, Barfresh Food 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 Barfresh Food will offset losses from the drop in Barfresh Food's long position.| Flow Beverage vs. Barfresh Food Group | Flow Beverage vs. Fbec Worldwide | Flow Beverage vs. Hill Street Beverage | Flow Beverage vs. Eq Energy Drink |
| Barfresh Food vs. Flow Beverage Corp | Barfresh Food vs. Fbec Worldwide | Barfresh Food vs. Hill Street Beverage | Barfresh Food vs. Eq Energy Drink |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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