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Correlation Between Barnes and DOW

Analyzing existing cross correlation between Barnes Group and DOW. You can compare the effects of market volatilities on Barnes and DOW 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 Barnes with a short position of DOW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and DOW.

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Diversification Opportunities for Barnes and DOW

Barnes Group Inc diversification synergy
0.82
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DOW

Very poor diversification

The 3 months correlation between Barnes and DOW is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group Inc and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Barnes 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 Barnes Group are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Barnes i.e. Barnes and DOW go up and down completely randomly.
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Pair Corralation between Barnes and DOW

Taking into account the 30 trading days horizon, Barnes Group is expected to generate 1.72 times more return on investment than DOW. However, Barnes is 1.72 times more volatile than DOW. It trades about 0.12 of its potential returns per unit of risk. DOW is currently generating about 0.07 per unit of risk. If you would invest  6,032  in Barnes Group on January 23, 2020 and sell it today you would earn a total of  596.00  from holding Barnes Group or generate 9.88% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Barnes Group Inc  vs.  DOW

 Performance (%) 
    
  Timeline 
 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.