Correlation Between Barclays Capital and American Security
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and American Security 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 American Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and American Security Resources, you can compare the effects of market volatilities on Barclays Capital and American Security 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 American Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and American Security.
Diversification Opportunities for Barclays Capital and American Security
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and American Security Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Security 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 American Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Security has no effect on the direction of Barclays Capital i.e., Barclays Capital and American Security go up and down completely randomly.
Pair Corralation between Barclays Capital and American Security
Considering the 90-day investment horizon Barclays Capital is expected to under-perform the American Security. But the etf apears to be less risky and, when comparing its historical volatility, Barclays Capital is 27.79 times less risky than American Security. The etf trades about -0.09 of its potential returns per unit of risk. The American Security Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.01 in American Security Resources on January 19, 2024 and sell it today you would earn a total of 0.00 from holding American Security Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 13.31% |
| Values | Daily Returns |
Barclays Capital vs. American Security Resources
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Security |
Barclays Capital and American Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and American Security
The main advantage of trading using opposite Barclays Capital and American Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, American Security 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 American Security will offset losses from the drop in American Security'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 |
| American Security vs. Greenshift Corp | American Security vs. Next Hydrogen Solutions | American Security vs. Quality Industrial Corp | American Security vs. Weir Group PLC |
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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