Correlation Between Barclays ETN and PGIM ETF
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and PGIM 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 PGIM 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 PGIM ETF Trust, you can compare the effects of market volatilities on Barclays ETN and PGIM 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 PGIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and PGIM ETF.
Diversification Opportunities for Barclays ETN and PGIM ETF
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and PGIM is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and PGIM ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM 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 PGIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM ETF Trust has no effect on the direction of Barclays ETN i.e., Barclays ETN and PGIM ETF go up and down completely randomly.
Pair Corralation between Barclays ETN and PGIM ETF
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 2.89 times more return on investment than PGIM ETF. However, Barclays ETN is 2.89 times more volatile than PGIM ETF Trust. It trades about 0.51 of its potential returns per unit of risk. PGIM ETF Trust is currently generating about 0.06 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. PGIM ETF Trust
Performance |
| Timeline |
| Barclays ETN Select |
| PGIM ETF Trust |
Barclays ETN and PGIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and PGIM ETF
The main advantage of trading using opposite Barclays ETN and PGIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, PGIM 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 PGIM ETF will offset losses from the drop in PGIM 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 |
| PGIM ETF vs. Old Point Financial | PGIM ETF vs. Peoples Bancorp of | PGIM ETF vs. RiverFront Strategic Income |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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