Correlation Between IShares GSCI and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both IShares GSCI 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 IShares GSCI and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares GSCI Commodity and Barclays Capital, you can compare the effects of market volatilities on IShares GSCI 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 IShares GSCI with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares GSCI and Barclays Capital.
Diversification Opportunities for IShares GSCI and Barclays Capital
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Barclays is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding iShares GSCI Commodity and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and IShares GSCI 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 iShares GSCI Commodity 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 IShares GSCI i.e., IShares GSCI and Barclays Capital go up and down completely randomly.
Pair Corralation between IShares GSCI and Barclays Capital
If you would invest 2,678 in iShares GSCI Commodity on January 20, 2024 and sell it today you would earn a total of 61.00 from holding iShares GSCI Commodity or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
iShares GSCI Commodity vs. Barclays Capital
Performance |
| Timeline |
| iShares GSCI Commodity |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares GSCI and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares GSCI and Barclays Capital
The main advantage of trading using opposite IShares GSCI and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares GSCI 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.| IShares GSCI vs. Invesco Optimum Yield | IShares GSCI vs. First Trust Global | IShares GSCI vs. iShares ESG Aware | IShares GSCI vs. iShares Fallen Angels |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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