Correlation Between Barclays Capital and IShares GSCI
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and IShares GSCI 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 Barclays Capital and IShares GSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and iShares GSCI Commodity, you can compare the effects of market volatilities on Barclays Capital and IShares GSCI 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 Barclays Capital with a short position of IShares GSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and IShares GSCI.
Diversification Opportunities for Barclays Capital and IShares GSCI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and iShares GSCI Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares GSCI Commodity and Barclays Capital 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 Barclays Capital are associated (or correlated) with IShares GSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares GSCI Commodity has no effect on the direction of Barclays Capital i.e., Barclays Capital and IShares GSCI go up and down completely randomly.
Pair Corralation between Barclays Capital and IShares GSCI
Considering the 90-day investment horizon Barclays Capital is expected to under-perform the IShares GSCI. In addition to that, Barclays Capital is 1.19 times more volatile than iShares GSCI Commodity. It trades about -0.03 of its total potential returns per unit of risk. iShares GSCI Commodity is currently generating about -0.01 per unit of volatility. If you would invest 3,114 in iShares GSCI Commodity on January 26, 2024 and sell it today you would lose (348.00) from holding iShares GSCI Commodity or give up 11.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 61.41% |
Values | Daily Returns |
Barclays Capital vs. iShares GSCI Commodity
Performance |
Timeline |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
iShares GSCI Commodity |
Barclays Capital and IShares GSCI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays Capital and IShares GSCI
The main advantage of trading using opposite Barclays Capital and IShares GSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, IShares GSCI 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 IShares GSCI will offset losses from the drop in IShares GSCI's long position.Barclays Capital vs. First Trust Global | Barclays Capital vs. UBS AG London | Barclays Capital vs. abrdn Bloomberg All |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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