Correlation Between Barclays PLC and US National
Can any of the company-specific risk be diversified away by investing in both Barclays PLC and US National 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 PLC and US National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays PLC ADR and US National Telecom, you can compare the effects of market volatilities on Barclays PLC and US National 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 PLC with a short position of US National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays PLC and US National.
Diversification Opportunities for Barclays PLC and US National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and USNL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays PLC ADR and US National Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US National Telecom and Barclays PLC 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 PLC ADR are associated (or correlated) with US National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US National Telecom has no effect on the direction of Barclays PLC i.e., Barclays PLC and US National go up and down completely randomly.
Pair Corralation between Barclays PLC and US National
If you would invest 739.00 in Barclays PLC ADR on February 12, 2024 and sell it today you would earn a total of 340.00 from holding Barclays PLC ADR or generate 46.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Barclays PLC ADR vs. US National Telecom
Performance |
Timeline |
Barclays PLC ADR |
US National Telecom |
Barclays PLC and US National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays PLC and US National
The main advantage of trading using opposite Barclays PLC and US National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays PLC position performs unexpectedly, US National 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 US National will offset losses from the drop in US National's long position.The idea behind Barclays PLC ADR and US National Telecom 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.US National vs. Burlington Stores | US National vs. Getty Realty | US National vs. Genuine Parts Co | US National vs. Duluth Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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