Correlation Between Baxter International and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Baxter International and Barclays Capital 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 Baxter International and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baxter International and Barclays Capital, you can compare the effects of market volatilities on Baxter International and Barclays Capital 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 Baxter International with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baxter International and Barclays Capital.
Diversification Opportunities for Baxter International and Barclays Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baxter and Barclays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baxter International and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and Baxter International 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 Baxter International are associated (or correlated) with Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Baxter International i.e., Baxter International and Barclays Capital go up and down completely randomly.
Pair Corralation between Baxter International and Barclays Capital
If you would invest 3,883 in Baxter International on December 29, 2023 and sell it today you would earn a total of 386.00 from holding Baxter International or generate 9.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Baxter International vs. Barclays Capital
Performance |
Timeline |
Baxter International |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Baxter International and Barclays Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baxter International and Barclays Capital
The main advantage of trading using opposite Baxter International and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baxter International position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.Baxter International vs. Cigna Corp | Baxter International vs. Definitive Healthcare Corp | Baxter International vs. Guardant Health | Baxter International vs. Laboratory |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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