Correlation Between ZKB Silver and Barclays Capital

Can any of the company-specific risk be diversified away by investing in both ZKB Silver 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 ZKB Silver and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ZKB Silver ETF and Barclays Capital, you can compare the effects of market volatilities on ZKB Silver 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 ZKB Silver with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZKB Silver and Barclays Capital.

Diversification Opportunities for ZKB Silver and Barclays Capital

-0.44

Correlation Coefficient

ZKB Silver  Barclays Capital

Very good diversification

The 3 months correlation between ZKB and Barclays is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding ZKB Silver ETF and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and ZKB Silver 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 ZKB Silver ETF 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 ZKB Silver i.e., ZKB Silver and Barclays Capital go up and down completely randomly.

Pair Corralation between ZKB Silver and Barclays Capital

Assuming the 90 days horizon ZKB Silver is expected to generate 4.62 times less return on investment than Barclays Capital. In addition to that, ZKB Silver is 1.54 times more volatile than Barclays Capital. It trades about 0.01 of its total potential returns per unit of risk. Barclays Capital is currently generating about 0.05 per unit of volatility. If you would invest  5,824  in Barclays Capital on January 25, 2024 and sell it today you would earn a total of  780.00  from holding Barclays Capital or generate 13.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	50.66%
Values	Daily Returns

ZKB Silver ETF  vs.  Barclays Capital

ZKB Silver ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZKB Silver ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, ZKB Silver is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Barclays Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barclays Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking indicators, Barclays Capital is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ZKB Silver and Barclays Capital

The main advantage of trading using opposite ZKB Silver and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZKB Silver 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 ZKB Silver ETF 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.