Correlation Between United States and Barclays Capital

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Can any of the company-specific risk be diversified away by investing in both United States 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 United States and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Natural and Barclays Capital, you can compare the effects of market volatilities on United States 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 United States with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Barclays Capital.

Diversification Opportunities for United States and Barclays Capital

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between United and Barclays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United States Natural and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and United States 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 United States Natural 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 United States i.e., United States and Barclays Capital go up and down completely randomly.

Pair Corralation between United States and Barclays Capital

If you would invest (100.00) in Barclays Capital on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Barclays Capital or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

United States Natural  vs.  Barclays Capital

 Performance 
       Timeline  
United States Natural 

Risk-Adjusted Performance

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Over the last 90 days United States Natural has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.
Barclays Capital 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Barclays Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Barclays Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

United States and Barclays Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with United States and Barclays Capital

The main advantage of trading using opposite United States and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.
The idea behind United States Natural and Barclays Capital 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.
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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