Correlation Between Ingersoll Rand and Barnes
Can any of the company-specific risk be diversified away by investing in both Ingersoll Rand 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 Ingersoll Rand and Barnes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingersoll Rand and Barnes Group, you can compare the effects of market volatilities on Ingersoll Rand 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 Ingersoll Rand with a short position of Barnes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingersoll Rand and Barnes.
Diversification Opportunities for Ingersoll Rand and Barnes
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ingersoll and Barnes is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ingersoll Rand and Barnes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Group and Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand i.e., Ingersoll Rand and Barnes go up and down completely randomly.
Pair Corralation between Ingersoll Rand and Barnes
Allowing for the 90-day total investment horizon Ingersoll Rand is expected to generate 0.73 times more return on investment than Barnes. However, Ingersoll Rand is 1.36 times less risky than Barnes. It trades about 0.09 of its potential returns per unit of risk. Barnes Group is currently generating about 0.02 per unit of risk. If you would invest 4,670 in Ingersoll Rand on December 29, 2023 and sell it today you would earn a total of 4,856 from holding Ingersoll Rand or generate 103.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ingersoll Rand vs. Barnes Group
Performance |
Timeline |
Ingersoll Rand |
Barnes Group |
Ingersoll Rand and Barnes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ingersoll Rand and Barnes
The main advantage of trading using opposite Ingersoll Rand and Barnes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingersoll Rand 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.Ingersoll Rand vs. Babcock Wilcox Enterprises | Ingersoll Rand vs. Crane Company | Ingersoll Rand vs. General Electric | Ingersoll Rand vs. Richtech Robotics Class |
Barnes vs. Babcock Wilcox Enterprises | Barnes vs. Crane Company | Barnes vs. General Electric | Barnes vs. Richtech Robotics Class |
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 the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |