Correlation Between Barclays Capital and United States
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and United States 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 United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and United States Natural, you can compare the effects of market volatilities on Barclays Capital and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and United States.
Diversification Opportunities for Barclays Capital and United States
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barclays and United is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and United States Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Natural 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Natural has no effect on the direction of Barclays Capital i.e., Barclays Capital and United States go up and down completely randomly.
Pair Corralation between Barclays Capital and United States
Considering the 90-day investment horizon Barclays Capital is expected to generate 0.44 times more return on investment than United States. However, Barclays Capital is 2.26 times less risky than United States. It trades about -0.01 of its potential returns per unit of risk. United States Natural is currently generating about -0.06 per unit of risk. If you would invest 2,881 in Barclays Capital on January 26, 2024 and sell it today you would lose (39.00) from holding Barclays Capital or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 22.0% |
| Values | Daily Returns |
Barclays Capital vs. United States Natural
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United States Natural |
Barclays Capital and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and United States
The main advantage of trading using opposite Barclays Capital and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' 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 |
| United States vs. HUMANA INC | United States vs. Aquagold International | United States vs. Barloworld Ltd ADR | United States vs. Morningstar Unconstrained Allocation |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets |