Correlation Between Twitter and Bar Harbor

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

Diversification Opportunities for Twitter and Bar Harbor

0.82
  Correlation Coefficient

Very poor diversification

The 1 month correlation between Twitter and Bar Harbor is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Bar Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bar Harbor Bankshares and Twitter 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 Twitter are associated (or correlated) with Bar Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bar Harbor Bankshares has no effect on the direction of Twitter i.e., Twitter and Bar Harbor go up and down completely randomly.

Pair Corralation between Twitter and Bar Harbor

Given the investment horizon of 90 days Twitter is expected to generate 1.03 times less return on investment than Bar Harbor. In addition to that, Twitter is 1.43 times more volatile than Bar Harbor Bankshares. It trades about 0.16 of its total potential returns per unit of risk. Bar Harbor Bankshares is currently generating about 0.23 per unit of volatility. If you would invest  2,470  in Bar Harbor Bankshares on May 14, 2022 and sell it today you would earn a total of  503.00  from holding Bar Harbor Bankshares or generate 20.36% return on investment over 90 days.
Time Period1 Month [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Twitter  vs.  Bar Harbor Bankshares

 Performance (%) 
       Timeline  
Twitter 
Twitter Performance
37 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 37 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Twitter reported solid returns over the last few months and may actually be approaching a breakup point.

Twitter Price Channel

Bar Harbor Bankshares 
Bar Harbor Performance
29 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bar Harbor Bankshares are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical indicators, Bar Harbor sustained solid returns over the last few months and may actually be approaching a breakup point.

Bar Harbor Price Channel

Twitter and Bar Harbor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Twitter and Bar Harbor

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

Bar Harbor Bankshares

Pair trading matchups for Bar Harbor

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go