Correlation Between American Century and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both American Century 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 American Century and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Century Emerging and Barclays Capital, you can compare the effects of market volatilities on American Century 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 American Century with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Century and Barclays Capital.
Diversification Opportunities for American Century and Barclays Capital
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Barclays is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding American Century Emerging and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and American Century 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 American Century Emerging 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 American Century i.e., American Century and Barclays Capital go up and down completely randomly.
Pair Corralation between American Century and Barclays Capital
If you would invest 3,573 in American Century Emerging on February 28, 2024 and sell it today you would earn a total of 268.00 from holding American Century Emerging or generate 7.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 0.81% |
Values | Daily Returns |
American Century Emerging vs. Barclays Capital
Performance |
Timeline |
American Century Emerging |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Century and Barclays Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Century and Barclays Capital
The main advantage of trading using opposite American Century and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century 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.American Century vs. Goldman Sachs ActiveBeta | American Century vs. Goldman Sachs Access | American Century vs. Goldman Sachs Access | American Century vs. Goldman Sachs Access |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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