Correlation Between Barclays Capital and IPath Series
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and IPath Series 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 IPath Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and iPath Series B, you can compare the effects of market volatilities on Barclays Capital and IPath Series 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 IPath Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and IPath Series.
Diversification Opportunities for Barclays Capital and IPath Series
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and IPath is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and iPath Series B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPath Series B 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 IPath Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPath Series B has no effect on the direction of Barclays Capital i.e., Barclays Capital and IPath Series go up and down completely randomly.
Pair Corralation between Barclays Capital and IPath Series
If you would invest 4,235 in Barclays Capital on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Barclays Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.49% |
| Values | Daily Returns |
Barclays Capital vs. iPath Series B
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iPath Series B |
Barclays Capital and IPath Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and IPath Series
The main advantage of trading using opposite Barclays Capital and IPath Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, IPath Series 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 IPath Series will offset losses from the drop in IPath Series' 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 |
| IPath Series vs. KraneShares Global Carbon | IPath Series vs. KraneShares European Carbon | IPath Series vs. KraneShares California Carbon | IPath Series vs. Breakwave Dry Bulk |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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