Correlation Between Barclays Capital and CHIE
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and CHIE 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 Capital and CHIE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and CHIE, you can compare the effects of market volatilities on Barclays Capital and CHIE 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 Capital with a short position of CHIE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and CHIE.
Diversification Opportunities for Barclays Capital and CHIE
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and CHIE is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and CHIE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIE and Barclays Capital 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 Capital are associated (or correlated) with CHIE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIE has no effect on the direction of Barclays Capital i.e., Barclays Capital and CHIE go up and down completely randomly.
Pair Corralation between Barclays Capital and CHIE
If you would invest 1,475 in CHIE on September 12, 2024 and sell it today you would earn a total of 5.00 from holding CHIE or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.0% |
| Values | Daily Returns |
Barclays Capital vs. CHIE
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CHIE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barclays Capital and CHIE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and CHIE
The main advantage of trading using opposite Barclays Capital and CHIE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, CHIE 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 CHIE will offset losses from the drop in CHIE's long position.| Barclays Capital vs. Humana Inc | Barclays Capital vs. Amylyx Pharmaceuticals | Barclays Capital vs. Prime Medicine, Common | Barclays Capital vs. enGene Holdings Common |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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