Correlation Between GM and Barfresh Food
Can any of the company-specific risk be diversified away by investing in both GM 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 GM and Barfresh Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Barfresh Food Group, you can compare the effects of market volatilities on GM 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 GM with a short position of Barfresh Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Barfresh Food.
Diversification Opportunities for GM and Barfresh Food
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GM and Barfresh is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding General Motors 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 GM 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 General Motors 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 GM i.e., GM and Barfresh Food go up and down completely randomly.
Pair Corralation between GM and Barfresh Food
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Barfresh Food. But the stock apears to be less risky and, when comparing its historical volatility, General Motors is 2.45 times less risky than Barfresh Food. The stock trades about 0.0 of its potential returns per unit of risk. The Barfresh Food Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 253.00 in Barfresh Food Group on November 1, 2024 and sell it today you would earn a total of 135.00 from holding Barfresh Food Group or generate 53.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Barfresh Food Group
Performance |
| Timeline |
| General Motors |
| Barfresh Food Group |
GM and Barfresh Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Barfresh Food
The main advantage of trading using opposite GM and Barfresh Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM 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.The idea behind General Motors and Barfresh Food Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |