Correlation Between Barclays ETN and SHP ETF
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and SHP ETF 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 ETN and SHP ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Select and SHP ETF Trust, you can compare the effects of market volatilities on Barclays ETN and SHP ETF 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 ETN with a short position of SHP ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and SHP ETF.
Diversification Opportunities for Barclays ETN and SHP ETF
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and SHP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and SHP ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHP ETF Trust and Barclays ETN 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 ETN Select are associated (or correlated) with SHP ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHP ETF Trust has no effect on the direction of Barclays ETN i.e., Barclays ETN and SHP ETF go up and down completely randomly.
Pair Corralation between Barclays ETN and SHP ETF
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 3.09 times more return on investment than SHP ETF. However, Barclays ETN is 3.09 times more volatile than SHP ETF Trust. It trades about 0.51 of its potential returns per unit of risk. SHP ETF Trust is currently generating about 0.07 per unit of risk. If you would invest 2,654 in Barclays ETN Select on August 29, 2024 and sell it today you would earn a total of 330.00 from holding Barclays ETN Select or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays ETN Select vs. SHP ETF Trust
Performance |
| Timeline |
| Barclays ETN Select |
| SHP ETF Trust |
Barclays ETN and SHP ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and SHP ETF
The main advantage of trading using opposite Barclays ETN and SHP ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, SHP ETF 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 SHP ETF will offset losses from the drop in SHP ETF's long position.| Barclays ETN vs. Alerian Energy Infrastructure | Barclays ETN vs. UBS AG London | Barclays ETN vs. First Trust North | Barclays ETN vs. Tortoise North American |
| SHP ETF vs. Valued Advisers Trust | SHP ETF vs. Columbia Diversified Fixed | SHP ETF vs. Principal Exchange Traded Funds | SHP ETF vs. Doubleline Etf Trust |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |