Correlation Between Barclays Capital and Invesco DB

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

Diversification Opportunities for Barclays Capital and Invesco DB

-0.81
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Barclays and Invesco is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Invesco DB Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco DB Commodity 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 Invesco DB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco DB Commodity has no effect on the direction of Barclays Capital i.e., Barclays Capital and Invesco DB go up and down completely randomly.

Pair Corralation between Barclays Capital and Invesco DB

If you would invest  2,460  in Barclays Capital on March 6, 2024 and sell it today you would earn a total of  0.00  from holding Barclays Capital or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy5.0%
ValuesDaily Returns

Barclays Capital  vs.  Invesco DB Commodity

 Performance 
       Timeline  
Barclays Capital 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 forward-looking indicators, Barclays Capital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Invesco DB Commodity 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco DB Commodity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, Invesco DB is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Barclays Capital and Invesco DB Volatility Contrast

   Predicted Return Density   
       Returns  
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