Correlation Analysis Between DOW and Barrett Business

This module allows you to analyze existing cross correlation between DOW and Barrett Business Services. You can compare the effects of market volatilities on DOW and Barrett Business 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 DOW with a short position of Barrett Business. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Barrett Business.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

DOW  vs.  Barrett Business Services Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 2.9 times less return on investment than Barrett Business. But when comparing it to its historical volatility, DOW is 1.98 times less risky than Barrett Business. It trades about 0.04 of its potential returns per unit of risk. Barrett Business Services is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  8,356  in Barrett Business Services on August 18, 2019 and sell it today you would earn a total of  511.00  from holding Barrett Business Services or generate 6.12% return on investment over 30 days.

Pair Corralation between DOW and Barrett Business

0.75
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for DOW and Barrett Business

DOW diversification synergy

Poor diversification

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