Correlation Between Aspen Technology and Barnes Noble

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aspen Technology and Barnes Noble 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 Aspen Technology and Barnes Noble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Technology and Barnes Noble Education, you can compare the effects of market volatilities on Aspen Technology and Barnes Noble 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 Aspen Technology with a short position of Barnes Noble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Technology and Barnes Noble.

Diversification Opportunities for Aspen Technology and Barnes Noble

-0.13
  Correlation Coefficient

Good diversification

The 3 months correlation between Aspen and Barnes is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Technology and Barnes Noble Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Noble Education and Aspen Technology 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 Aspen Technology are associated (or correlated) with Barnes Noble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Noble Education has no effect on the direction of Aspen Technology i.e., Aspen Technology and Barnes Noble go up and down completely randomly.

Pair Corralation between Aspen Technology and Barnes Noble

Given the investment horizon of 90 days Aspen Technology is expected to generate 0.9 times more return on investment than Barnes Noble. However, Aspen Technology is 1.11 times less risky than Barnes Noble. It trades about 0.1 of its potential returns per unit of risk. Barnes Noble Education is currently generating about -0.21 per unit of risk. If you would invest  22,739  in Aspen Technology on September 6, 2022 and sell it today you would earn a total of  1,260  from holding Aspen Technology or generate 5.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aspen Technology  vs.  Barnes Noble Education

 Performance (%) 
       Timeline  
Aspen Technology 
Aspen Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Aspen Technology are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Aspen Technology disclosed solid returns over the last few months and may actually be approaching a breakup point.

Aspen Price Channel

Barnes Noble Education 
Barnes Performance
0 of 100
Over the last 90 days Barnes Noble Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Barnes Noble is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Barnes Price Channel

Aspen Technology and Barnes Noble Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aspen Technology and Barnes Noble

The main advantage of trading using opposite Aspen Technology and Barnes Noble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Technology position performs unexpectedly, Barnes Noble 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 Noble will offset losses from the drop in Barnes Noble's long position.
Aspen Technology vs. Absolute Software
Aspen Technology vs. ADEIA CORP
The idea behind Aspen Technology and Barnes Noble Education 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.
Barnes Noble vs. AutoZone
Barnes Noble vs. Best Buy Co
Barnes Noble vs. Conns Inc
Barnes Noble vs. 1-800 FLOWERSCOM
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Other Complementary Tools

Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go