Correlation Between GreenPro Capital and Barnes

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

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

Diversification Opportunities for GreenPro Capital and Barnes

0.11

Correlation Coefficient

GreenPro Capital  Barnes

Average diversification

The 3 months correlation between GreenPro and Barnes is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GreenPro Capital Corp and Barnes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Group and GreenPro Capital 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 GreenPro Capital Corp are associated (or correlated) with Barnes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Group has no effect on the direction of GreenPro Capital i.e., GreenPro Capital and Barnes go up and down completely randomly.

Pair Corralation between GreenPro Capital and Barnes

Given the investment horizon of 90 days GreenPro Capital Corp is expected to generate 65.94 times more return on investment than Barnes. However, GreenPro Capital is 65.94 times more volatile than Barnes Group. It trades about 0.08 of its potential returns per unit of risk. Barnes Group is currently generating about 0.21 per unit of risk. If you would invest  91.00  in GreenPro Capital Corp on September 22, 2024 and sell it today you would earn a total of  14.00  from holding GreenPro Capital Corp or generate 15.38% return on investment over 90 days.

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

GreenPro Capital Corp  vs.  Barnes Group

GreenPro Capital Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GreenPro Capital Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, GreenPro Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Barnes Group

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Barnes Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental drivers, Barnes sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GreenPro Capital and Barnes

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

The idea behind GreenPro Capital Corp and Barnes Group 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.