Correlation Between BARNETT INC and AKA Brands

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Can any of the company-specific risk be diversified away by investing in both BARNETT INC and AKA Brands 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 BARNETT INC and AKA Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BARNETT INC and AKA Brands Holding, you can compare the effects of market volatilities on BARNETT INC and AKA Brands 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 BARNETT INC with a short position of AKA Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of BARNETT INC and AKA Brands.

Diversification Opportunities for BARNETT INC and AKA Brands

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between BARNETT INC and AKA Brands

Given the investment horizon of 90 days BARNETT INC is expected to generate 0.6 times more return on investment than AKA Brands. However, BARNETT INC is 1.66 times less risky than AKA Brands. It trades about -0.08 of its potential returns per unit of risk. AKA Brands Holding is currently generating about -0.11 per unit of risk. If you would invest  170.00  in BARNETT INC on April 3, 2022 and sell it today you would lose (110.00)  from holding BARNETT INC or give up 64.71% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy56.61%
ValuesDaily Returns

BARNETT INC  vs.  AKA Brands Holding

 Performance (%) 
      Timeline 
BARNETT INC 
BARNETT Performance
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Over the last 90 days BARNETT INC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, BARNETT INC is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
AKA Brands Holding 
AKA Brands Performance
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Over the last 90 days AKA Brands Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's forward-looking signals remain somewhat strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Last Split Factor
1:1
Last Split Date
2010-03-30

AKA Brands Price Channel

BARNETT INC and AKA Brands Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with BARNETT INC and AKA Brands

The main advantage of trading using opposite BARNETT INC and AKA Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BARNETT INC position performs unexpectedly, AKA Brands 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 AKA Brands will offset losses from the drop in AKA Brands' long position.
The idea behind BARNETT INC and AKA Brands Holding 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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