Correlation Between Spectrum Brands and Barnes Noble
Can any of the company-specific risk be diversified away by investing in both Spectrum Brands and Barnes Noble 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 Spectrum Brands and Barnes Noble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrum Brands Holdings and Barnes Noble, you can compare the effects of market volatilities on Spectrum Brands and Barnes Noble 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 Spectrum Brands with a short position of Barnes Noble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Brands and Barnes Noble.
Diversification Opportunities for Spectrum Brands and Barnes Noble
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spectrum and Barnes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Brands Holdings and Barnes Noble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Noble and Spectrum Brands 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 Spectrum Brands Holdings are associated (or correlated) with Barnes Noble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Noble has no effect on the direction of Spectrum Brands i.e., Spectrum Brands and Barnes Noble go up and down completely randomly.
Pair Corralation between Spectrum Brands and Barnes Noble
If you would invest (100.00) in Barnes Noble on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Barnes Noble or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Spectrum Brands Holdings vs. Barnes Noble
Performance |
Timeline |
Spectrum Brands Holdings |
Barnes Noble |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Spectrum Brands and Barnes Noble Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spectrum Brands and Barnes Noble
The main advantage of trading using opposite Spectrum Brands and Barnes Noble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Brands position performs unexpectedly, Barnes Noble 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 Noble will offset losses from the drop in Barnes Noble's long position.Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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