Correlation Between Barclays Capital and Lict
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Lict 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 Lict into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Lict Corporation, you can compare the effects of market volatilities on Barclays Capital and Lict 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 Lict. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Lict.
Diversification Opportunities for Barclays Capital and Lict
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and Lict is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Lict Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lict 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 Lict. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lict has no effect on the direction of Barclays Capital i.e., Barclays Capital and Lict go up and down completely randomly.
Pair Corralation between Barclays Capital and Lict
If you would invest 7,921 in Barclays Capital on January 24, 2024 and sell it today you would lose (391.00) from holding Barclays Capital or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.74% |
| Values | Daily Returns |
Barclays Capital vs. Lict Corp.
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lict |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barclays Capital and Lict Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Lict
The main advantage of trading using opposite Barclays Capital and Lict positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Lict 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 Lict will offset losses from the drop in Lict's long position.The idea behind Barclays Capital and Lict Corporation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lict vs. SK Telecom Co | Lict vs. TIM Participacoes SA | Lict vs. PLDT Inc ADR | Lict vs. Liberty Broadband Srs |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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