Correlation Between Barnes Noble and Sally Beauty
Can any of the company-specific risk be diversified away by investing in both Barnes Noble and Sally Beauty 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 Barnes Noble and Sally Beauty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barnes Noble and Sally Beauty Holdings, you can compare the effects of market volatilities on Barnes Noble and Sally Beauty 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 Barnes Noble with a short position of Sally Beauty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barnes Noble and Sally Beauty.
Diversification Opportunities for Barnes Noble and Sally Beauty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barnes and Sally is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barnes Noble and Sally Beauty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sally Beauty Holdings and Barnes Noble 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 Barnes Noble are associated (or correlated) with Sally Beauty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sally Beauty Holdings has no effect on the direction of Barnes Noble i.e., Barnes Noble and Sally Beauty go up and down completely randomly.
Pair Corralation between Barnes Noble and Sally Beauty
If you would invest 1,219 in Sally Beauty Holdings on January 19, 2024 and sell it today you would lose (178.00) from holding Sally Beauty Holdings or give up 14.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Barnes Noble vs. Sally Beauty Holdings
Performance |
Timeline |
Barnes Noble |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sally Beauty Holdings |
Barnes Noble and Sally Beauty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barnes Noble and Sally Beauty
The main advantage of trading using opposite Barnes Noble and Sally Beauty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barnes Noble position performs unexpectedly, Sally Beauty 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 Sally Beauty will offset losses from the drop in Sally Beauty's long position.Barnes Noble vs. Skyworks Solutions | Barnes Noble vs. Analog Devices | Barnes Noble vs. NETGEAR | Barnes Noble vs. Blue Hat Interactive |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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