Correlation Between Barclays Capital and Hon Hai
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Hon Hai 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 Hon Hai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Hon Hai Precision, you can compare the effects of market volatilities on Barclays Capital and Hon Hai 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 Hon Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Hon Hai.
Diversification Opportunities for Barclays Capital and Hon Hai
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Hon is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Hon Hai Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hon Hai Precision 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 Hon Hai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hon Hai Precision has no effect on the direction of Barclays Capital i.e., Barclays Capital and Hon Hai go up and down completely randomly.
Pair Corralation between Barclays Capital and Hon Hai
If you would invest 641.00 in Hon Hai Precision on January 26, 2024 and sell it today you would earn a total of 304.00 from holding Hon Hai Precision or generate 47.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barclays Capital vs. Hon Hai Precision
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hon Hai Precision |
Barclays Capital and Hon Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Hon Hai
The main advantage of trading using opposite Barclays Capital and Hon Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Hon Hai 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 Hon Hai will offset losses from the drop in Hon Hai's long position.| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP | Barclays Capital vs. Vanguard Total Bond |
| Hon Hai vs. alpha En | Hon Hai vs. Bitmine Immersion Technologies | Hon Hai vs. Ouster Inc | Hon Hai vs. Kopin |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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