Correlation Between Barclays Capital and JJEB
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and JJEB 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 JJEB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and JJEB, you can compare the effects of market volatilities on Barclays Capital and JJEB 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 JJEB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and JJEB.
Diversification Opportunities for Barclays Capital and JJEB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and JJEB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and JJEB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJEB 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 JJEB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJEB has no effect on the direction of Barclays Capital i.e., Barclays Capital and JJEB go up and down completely randomly.
Pair Corralation between Barclays Capital and JJEB
If you would invest (100.00) in JJEB on January 25, 2024 and sell it today you would earn a total of 100.00 from holding JJEB or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Barclays Capital vs. JJEB
Performance |
Timeline |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
JJEB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barclays Capital and JJEB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays Capital and JJEB
The main advantage of trading using opposite Barclays Capital and JJEB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, JJEB 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 JJEB will offset losses from the drop in JJEB'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 |
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 Stocks Directory module to find actively traded stocks across global markets.
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