Correlation Between Barfresh Food and V

Can any of the company-specific risk be diversified away by investing in both Barfresh Food and V 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 V 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 V Group, you can compare the effects of market volatilities on Barfresh Food and V 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 V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barfresh Food and V.

Diversification Opportunities for Barfresh Food and V

0.0

Correlation Coefficient

Barfresh Food  V

Pay attention - limited upside

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

Pair Corralation between Barfresh Food and V

If you would invest  219.00  in Barfresh Food Group on August 30, 2024 and sell it today you would earn a total of  75.00  from holding Barfresh Food Group or generate 34.25% return on investment over 90 days.

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

Barfresh Food Group  vs.  V Group

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 latest fragile performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

V Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days V Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, V is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Barfresh Food and V

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

The idea behind Barfresh Food Group and V 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.