Correlation Between Twin Butte and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Twin Butte and Barclays Capital 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 Twin Butte and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twin Butte Energy and Barclays Capital, you can compare the effects of market volatilities on Twin Butte and Barclays Capital 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 Twin Butte with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twin Butte and Barclays Capital.
Diversification Opportunities for Twin Butte and Barclays Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Twin and Barclays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Twin Butte Energy and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and Twin Butte 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 Twin Butte Energy are associated (or correlated) with Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Twin Butte i.e., Twin Butte and Barclays Capital go up and down completely randomly.
Pair Corralation between Twin Butte and Barclays Capital
Assuming the 90 days horizon Twin Butte Energy is expected to under-perform the Barclays Capital. In addition to that, Twin Butte is 1.97 times more volatile than Barclays Capital. It trades about -0.04 of its total potential returns per unit of risk. Barclays Capital is currently generating about -0.02 per unit of volatility. 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 |
Twin Butte Energy vs. Barclays Capital
Performance |
| Timeline |
| Twin Butte Energy |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Twin Butte and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Twin Butte and Barclays Capital
The main advantage of trading using opposite Twin Butte and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twin Butte position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.| Twin Butte vs. Indo Tambangraya Megah | Twin Butte vs. Bukit Asam Tbk | Twin Butte vs. Geo Energy Resources | Twin Butte vs. Yancoal Australia |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |