Correlation Between Barclays Capital and Origin Materials
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Origin Materials 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 Origin Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Origin Materials, you can compare the effects of market volatilities on Barclays Capital and Origin Materials 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 Origin Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Origin Materials.
Diversification Opportunities for Barclays Capital and Origin Materials
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barclays and Origin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Origin Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Materials 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 Origin Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Materials has no effect on the direction of Barclays Capital i.e., Barclays Capital and Origin Materials go up and down completely randomly.
Pair Corralation between Barclays Capital and Origin Materials
If you would invest 53.00 in Origin Materials on January 20, 2024 and sell it today you would earn a total of 16.00 from holding Origin Materials or generate 30.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Barclays Capital vs. Origin Materials
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Origin Materials |
Barclays Capital and Origin Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Origin Materials
The main advantage of trading using opposite Barclays Capital and Origin Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Origin Materials 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 Origin Materials will offset losses from the drop in Origin Materials' 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 |
| Origin Materials vs. Tronox Holdings PLC | Origin Materials vs. Valhi Inc | Origin Materials vs. Lsb Industries | Origin Materials vs. Huntsman |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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