Correlation Between Richtech Robotics and Barnes

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

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

Diversification Opportunities for Richtech Robotics and Barnes

-0.75

Correlation Coefficient

Richtech Robotics  Barnes

Pay attention - limited upside

The 3 months correlation between Richtech and Barnes is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Richtech Robotics Class and Barnes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Group and Richtech Robotics 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 Richtech Robotics Class 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 Richtech Robotics i.e., Richtech Robotics and Barnes go up and down completely randomly.

Pair Corralation between Richtech Robotics and Barnes

Allowing for the 90-day total investment horizon Richtech Robotics Class is expected to under-perform the Barnes. In addition to that, Richtech Robotics is 3.18 times more volatile than Barnes Group. It trades about -0.09 of its total potential returns per unit of risk. Barnes Group is currently generating about 0.16 per unit of volatility. If you would invest  3,829  in Barnes Group on September 1, 2024 and sell it today you would earn a total of  855.00  from holding Barnes Group or generate 22.33% return on investment over 90 days.

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

Richtech Robotics Class  vs.  Barnes Group

Richtech Robotics Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Richtech Robotics Class has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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 Richtech Robotics and Barnes

The main advantage of trading using opposite Richtech Robotics and Barnes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Richtech Robotics 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 Richtech Robotics Class 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.