Correlation Between Barfresh Food and PowerFleet,

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

By analyzing existing cross correlation between Barfresh Food Group and PowerFleet,, you can compare the effects of market volatilities on Barfresh Food and PowerFleet, 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 Barfresh Food with a short position of PowerFleet,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barfresh Food and PowerFleet,.

Diversification Opportunities for Barfresh Food and PowerFleet,

0.31

Correlation Coefficient

Barfresh Food  PowerFleet,

Weak diversification

The 3 months correlation between Barfresh and PowerFleet, is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Barfresh Food Group and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Barfresh Food 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 Barfresh Food Group are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Barfresh Food i.e., Barfresh Food and PowerFleet, go up and down completely randomly.

Pair Corralation between Barfresh Food and PowerFleet,

Given the investment horizon of 90 days Barfresh Food Group is expected to under-perform the PowerFleet,. In addition to that, Barfresh Food is 1.15 times more volatile than PowerFleet,. It trades about -0.01 of its total potential returns per unit of risk. PowerFleet, is currently generating about 0.13 per unit of volatility. If you would invest  482.00  in PowerFleet, on September 15, 2024 and sell it today you would earn a total of  179.00  from holding PowerFleet, or generate 37.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Barfresh Food Group  vs.  PowerFleet,

Barfresh Food Group

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Barfresh Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Barfresh Food is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

PowerFleet,

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Barfresh Food and PowerFleet,

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

The idea behind Barfresh Food Group and PowerFleet, 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.