Correlation Between Barclays PLC and Barclays PLC
Can any of the company-specific risk be diversified away by investing in both Barclays PLC and Barclays PLC 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 PLC and Barclays PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays PLC ADR and Barclays PLC, you can compare the effects of market volatilities on Barclays PLC and Barclays PLC 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 PLC with a short position of Barclays PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays PLC and Barclays PLC.
Diversification Opportunities for Barclays PLC and Barclays PLC
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barclays and Barclays is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Barclays PLC ADR and Barclays PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC and Barclays PLC 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 PLC ADR are associated (or correlated) with Barclays PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays PLC has no effect on the direction of Barclays PLC i.e., Barclays PLC and Barclays PLC go up and down completely randomly.
Pair Corralation between Barclays PLC and Barclays PLC
Considering the 90-day investment horizon Barclays PLC ADR is expected to generate 0.69 times more return on investment than Barclays PLC. However, Barclays PLC ADR is 1.44 times less risky than Barclays PLC. It trades about 0.1 of its potential returns per unit of risk. Barclays PLC is currently generating about 0.07 per unit of risk. If you would invest 1,173 in Barclays PLC ADR on August 31, 2024 and sell it today you would earn a total of 150.00 from holding Barclays PLC ADR or generate 12.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays PLC ADR vs. Barclays PLC
Performance |
| Timeline |
| Barclays PLC ADR |
| Barclays PLC |
Barclays PLC and Barclays PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays PLC and Barclays PLC
The main advantage of trading using opposite Barclays PLC and Barclays PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays PLC position performs unexpectedly, Barclays PLC 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 Barclays PLC will offset losses from the drop in Barclays PLC's long position.| Barclays PLC vs. RLJ Lodging Trust | Barclays PLC vs. Aquagold International | Barclays PLC vs. Stepstone Group | Barclays PLC vs. Morningstar Unconstrained Allocation |
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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 Correlations module to find global opportunities by holding instruments from different markets.
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