Correlation Between Barclays ETN and Fidelity International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and Fidelity International 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 Fidelity International 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 Fidelity International Multifactor, you can compare the effects of market volatilities on Barclays ETN and Fidelity International 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 Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and Fidelity International.

Diversification Opportunities for Barclays ETN and Fidelity International

-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Barclays and Fidelity is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and Fidelity International Multifa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Barclays ETN i.e., Barclays ETN and Fidelity International go up and down completely randomly.

Pair Corralation between Barclays ETN and Fidelity International

Given the investment horizon of 90 days Barclays ETN Select is expected to generate 1.67 times more return on investment than Fidelity International. However, Barclays ETN is 1.67 times more volatile than Fidelity International Multifactor. It trades about 0.53 of its potential returns per unit of risk. Fidelity International Multifactor is currently generating about -0.15 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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Barclays ETN Select  vs.  Fidelity International Multifa

 Performance 
       Timeline  
Barclays ETN Select 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Barclays ETN Select are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Barclays ETN reported solid returns over the last few months and may actually be approaching a breakup point.
Fidelity International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fidelity International Multifactor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Fidelity International is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Barclays ETN and Fidelity International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Barclays ETN and Fidelity International

The main advantage of trading using opposite Barclays ETN and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, Fidelity International 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 Fidelity International will offset losses from the drop in Fidelity International's long position.
The idea behind Barclays ETN Select and Fidelity International Multifactor 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.
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.