Correlation Between Greene Concepts and Barfresh Food

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

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

Diversification Opportunities for Greene Concepts and Barfresh Food

-0.33

Correlation Coefficient

Greene Concepts  Barfresh Food

Very good diversification

The 3 months correlation between Greene and Barfresh is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Greene Concepts and Barfresh Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barfresh Food Group and Greene Concepts 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 Greene Concepts are associated (or correlated) with Barfresh Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barfresh Food Group has no effect on the direction of Greene Concepts i.e., Greene Concepts and Barfresh Food go up and down completely randomly.

Pair Corralation between Greene Concepts and Barfresh Food

Given the investment horizon of 90 days Greene Concepts is expected to under-perform the Barfresh Food. But the pink sheet apears to be less risky and, when comparing its historical volatility, Greene Concepts is 1.04 times less risky than Barfresh Food. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Barfresh Food Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  285.00  in Barfresh Food Group on October 6, 2024 and sell it today you would lose (26.00) from holding Barfresh Food Group or give up 9.12% of portfolio value over 90 days.

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

Greene Concepts  vs.  Barfresh Food Group

Greene Concepts

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greene Concepts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Barfresh Food Group

Risk-Adjusted Performance

0 of 100

Very 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.

Pair Trading with Greene Concepts and Barfresh Food

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

The idea behind Greene Concepts and Barfresh Food 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.