Correlation Between Hurco Companies and Barfresh Food

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

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

Diversification Opportunities for Hurco Companies and Barfresh Food

-0.19

Correlation Coefficient

Hurco Companies  Barfresh Food

Good diversification

The 3 months correlation between Hurco and Barfresh is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies 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 Hurco Companies 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 Hurco Companies 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 Hurco Companies i.e., Hurco Companies and Barfresh Food go up and down completely randomly.

Pair Corralation between Hurco Companies and Barfresh Food

Given the investment horizon of 90 days Hurco Companies is expected to generate 0.58 times more return on investment than Barfresh Food. However, Hurco Companies is 1.71 times less risky than Barfresh Food. It trades about 0.05 of its potential returns per unit of risk. Barfresh Food Group is currently generating about 0.02 per unit of risk. If you would invest  1,850  in Hurco Companies on September 14, 2024 and sell it today you would earn a total of  112.00  from holding Hurco Companies or generate 6.05% return on investment over 90 days.

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

Hurco Companies  vs.  Barfresh Food Group

Hurco Companies

Risk-Adjusted Performance

3 of 100

Insignificant

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

Barfresh Food Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Barfresh Food Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile technical and fundamental indicators, Barfresh Food may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Hurco Companies and Barfresh Food

The main advantage of trading using opposite Hurco Companies and Barfresh Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies 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 Hurco Companies 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.