Correlation Between 1 800 and Original Bark

Can any of the company-specific risk be diversified away by investing in both 1 800 and Original Bark 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 1 800 and Original Bark into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1 800 FLOWERSCOM and Original Bark Co, you can compare the effects of market volatilities on 1 800 and Original Bark 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 1 800 with a short position of Original Bark. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1 800 and Original Bark.

Diversification Opportunities for 1 800 and Original Bark

-0.36

Correlation Coefficient

1 800  Original Bark

Very good diversification

The 3 months correlation between FLWS and Original is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding 1 800 FLOWERSCOM and Original Bark Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Original Bark and 1 800 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 1 800 FLOWERSCOM are associated (or correlated) with Original Bark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Original Bark has no effect on the direction of 1 800 i.e., 1 800 and Original Bark go up and down completely randomly.

Pair Corralation between 1 800 and Original Bark

Given the investment horizon of 90 days 1 800 FLOWERSCOM is expected to generate 0.79 times more return on investment than Original Bark. However, 1 800 FLOWERSCOM is 1.26 times less risky than Original Bark. It trades about 0.23 of its potential returns per unit of risk. Original Bark Co is currently generating about 0.05 per unit of risk. If you would invest  727.00  in 1 800 FLOWERSCOM on October 24, 2024 and sell it today you would earn a total of  113.00  from holding 1 800 FLOWERSCOM or generate 15.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

1 800 FLOWERSCOM  vs.  Original Bark Co

1 800 FLOWERSCOM

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in 1 800 FLOWERSCOM are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, 1 800 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Original Bark

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Original Bark Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Original Bark disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 1 800 and Original Bark

The main advantage of trading using opposite 1 800 and Original Bark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1 800 position performs unexpectedly, Original Bark 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 Original Bark will offset losses from the drop in Original Bark's long position.

The idea behind 1 800 FLOWERSCOM and Original Bark Co 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.