Correlation Analysis Between East West and Barclays PLC

This module allows you to analyze existing cross correlation between East West Bancorp and Barclays PLC. You can compare the effects of market volatilities on East West and Barclays PLC 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 East West with a short position of Barclays PLC. See also your portfolio center. Please also check ongoing floating volatility patterns of East West and Barclays PLC.
Horizon     30 Days    Login   to change
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Comparative Performance

East West Bancorp  
00

Risk-Adjusted Performance

Over the last 30 days East West Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Barclays PLC  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Barclays PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively unsteady forward-looking signals, Barclays PLC may actually be approaching a critical reversion point that can send shares even higher in November 2019.

East West and Barclays PLC Volatility Contrast

 Predicted Return Density 
      Returns 

East West Bancorp Inc  vs.  Barclays PLC

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, East West Bancorp is expected to under-perform the Barclays PLC. In addition to that, East West is 1.19 times more volatile than Barclays PLC. It trades about -0.06 of its total potential returns per unit of risk. Barclays PLC is currently generating about 0.08 per unit of volatility. If you would invest  767.00  in Barclays PLC on September 19, 2019 and sell it today you would earn a total of  81.00  from holding Barclays PLC or generate 10.56% return on investment over 30 days.

Pair Corralation between East West and Barclays PLC

0.62
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy98.46%
ValuesDaily Returns

Diversification Opportunities for East West and Barclays PLC

East West Bancorp Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding East West Bancorp Inc and Barclays PLC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC and East West 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 East West Bancorp are associated (or correlated) with Barclays PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays PLC has no effect on the direction of East West i.e. East West and Barclays PLC go up and down completely randomly.
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.


 
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