Correlation Between Barclays ETN and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and Spinnaker 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 Spinnaker 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 Spinnaker ETF Series, you can compare the effects of market volatilities on Barclays ETN and Spinnaker 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 Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and Spinnaker ETF.
Diversification Opportunities for Barclays ETN and Spinnaker ETF
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Spinnaker is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series 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 Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of Barclays ETN i.e., Barclays ETN and Spinnaker ETF go up and down completely randomly.
Pair Corralation between Barclays ETN and Spinnaker ETF
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 4.09 times more return on investment than Spinnaker ETF. However, Barclays ETN is 4.09 times more volatile than Spinnaker ETF Series. It trades about 0.61 of its potential returns per unit of risk. Spinnaker ETF Series is currently generating about 0.04 per unit of risk. If you would invest 2,658 in Barclays ETN Select on September 1, 2024 and sell it today you would earn a total of 370.00 from holding Barclays ETN Select or generate 13.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barclays ETN Select vs. Spinnaker ETF Series
Performance |
| Timeline |
| Barclays ETN Select |
| Spinnaker ETF Series |
Barclays ETN and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and Spinnaker ETF
The main advantage of trading using opposite Barclays ETN and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, Spinnaker 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| Barclays ETN vs. First Trust North | Barclays ETN vs. Global X MLP | Barclays ETN vs. Global X MLP | Barclays ETN vs. Tortoise North American |
| Spinnaker ETF vs. Schwab International Equity | Spinnaker ETF vs. Schwab Emerging Markets | Spinnaker ETF vs. Schwab Short Term Treasury | Spinnaker ETF vs. Schwab TIPS ETF |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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