Correlation Between Barclays ETN and Return Stacked
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and Return Stacked 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 Return Stacked 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 Return Stacked Bonds, you can compare the effects of market volatilities on Barclays ETN and Return Stacked 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 Return Stacked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and Return Stacked.
Diversification Opportunities for Barclays ETN and Return Stacked
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Return is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and Return Stacked Bonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Return Stacked Bonds 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 Return Stacked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Return Stacked Bonds has no effect on the direction of Barclays ETN i.e., Barclays ETN and Return Stacked go up and down completely randomly.
Pair Corralation between Barclays ETN and Return Stacked
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 1.1 times more return on investment than Return Stacked. However, Barclays ETN is 1.1 times more volatile than Return Stacked Bonds. It trades about 0.15 of its potential returns per unit of risk. Return Stacked Bonds is currently generating about -0.09 per unit of risk. If you would invest 1,622 in Barclays ETN Select on December 4, 2024 and sell it today you would earn a total of 1,469 from holding Barclays ETN Select or generate 90.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 26.77% |
| Values | Daily Returns |
Barclays ETN Select vs. Return Stacked Bonds
Performance |
| Timeline |
| Barclays ETN Select |
| Return Stacked Bonds |
Barclays ETN and Return Stacked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and Return Stacked
The main advantage of trading using opposite Barclays ETN and Return Stacked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, Return Stacked 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 Return Stacked will offset losses from the drop in Return Stacked'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 |
| Return Stacked vs. Strategy Shares | Return Stacked vs. Freedom Day Dividend | Return Stacked vs. Franklin Templeton ETF | Return Stacked vs. iShares MSCI China |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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