Correlation Between Barnes and Harris Teeter

Can any of the company-specific risk be diversified away by investing in both Barnes and Harris Teeter 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 Barnes and Harris Teeter into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Barnes Group and Harris Teeter Supermarkets, you can compare the effects of market volatilities on Barnes and Harris Teeter 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 Harris Teeter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes and Harris Teeter.

Diversification Opportunities for Barnes and Harris Teeter

0.0

Correlation Coefficient

Barnes  Harris Teeter

Pay attention - limited upside

The 3 months correlation between Barnes and Harris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Group and Harris Teeter Supermarkets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harris Teeter Superm 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 Harris Teeter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harris Teeter Superm has no effect on the direction of Barnes i.e., Barnes and Harris Teeter go up and down completely randomly.

Pair Corralation between Barnes and Harris Teeter

If you would invest (100.00) in Harris Teeter Supermarkets on January 25, 2024 and sell it today you would earn a total of  100.00  from holding Harris Teeter Supermarkets 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

Barnes Group  vs.  Harris Teeter Supermarkets

Barnes Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Barnes Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Barnes sustained solid returns over the last few months and may actually be approaching a breakup point.

Harris Teeter Superm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harris Teeter Supermarkets has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Harris Teeter is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Barnes and Harris Teeter

The main advantage of trading using opposite Barnes and Harris Teeter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes position performs unexpectedly, Harris Teeter 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 Harris Teeter will offset losses from the drop in Harris Teeter's long position.

The idea behind Barnes Group and Harris Teeter Supermarkets 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.