Correlation Between Barclays Capital and MicroSectorsTM Oil
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and MicroSectorsTM Oil 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 MicroSectorsTM Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and MicroSectorsTM Oil Gas, you can compare the effects of market volatilities on Barclays Capital and MicroSectorsTM Oil 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 MicroSectorsTM Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and MicroSectorsTM Oil.
Diversification Opportunities for Barclays Capital and MicroSectorsTM Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and MicroSectorsTM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and MicroSectorsTM Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroSectorsTM Oil Gas 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 MicroSectorsTM Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroSectorsTM Oil Gas has no effect on the direction of Barclays Capital i.e., Barclays Capital and MicroSectorsTM Oil go up and down completely randomly.
Pair Corralation between Barclays Capital and MicroSectorsTM Oil
Considering the 90-day investment horizon Barclays Capital is expected to generate 0.42 times more return on investment than MicroSectorsTM Oil. However, Barclays Capital is 2.36 times less risky than MicroSectorsTM Oil. It trades about -0.02 of its potential returns per unit of risk. MicroSectorsTM Oil Gas is currently generating about -0.03 per unit of risk. If you would invest 3,442 in Barclays Capital on January 24, 2024 and sell it today you would lose (600.00) from holding Barclays Capital or give up 17.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 61.34% |
| Values | Daily Returns |
Barclays Capital vs. MicroSectorsTM Oil Gas
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MicroSectorsTM Oil Gas |
Barclays Capital and MicroSectorsTM Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and MicroSectorsTM Oil
The main advantage of trading using opposite Barclays Capital and MicroSectorsTM Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, MicroSectorsTM Oil 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 MicroSectorsTM Oil will offset losses from the drop in MicroSectorsTM Oil's long position.| Barclays Capital vs. United States Oil | Barclays Capital vs. Invesco DB Oil | Barclays Capital vs. ProShares Ultra Bloomberg | Barclays Capital vs. United States Natural |
| MicroSectorsTM Oil vs. MicroSectorsTM Oil Gas | MicroSectorsTM Oil vs. MicroSectors Big Oil | MicroSectorsTM Oil vs. UBS ETRACS | MicroSectorsTM Oil vs. Drum Income Plus |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |