Correlation Between Barclays Capital and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and IShares MSCI 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 IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and iShares MSCI South, you can compare the effects of market volatilities on Barclays Capital and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and IShares MSCI.
Diversification Opportunities for Barclays Capital and IShares MSCI
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and IShares is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and iShares MSCI South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI South 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI South has no effect on the direction of Barclays Capital i.e., Barclays Capital and IShares MSCI go up and down completely randomly.
Pair Corralation between Barclays Capital and IShares MSCI
If you would invest 1,937 in Barclays Capital on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Barclays Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Barclays Capital vs. iShares MSCI South
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares MSCI South |
Barclays Capital and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and IShares MSCI
The main advantage of trading using opposite Barclays Capital and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI'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 |
| IShares MSCI vs. iShares MSCI Taiwan | IShares MSCI vs. iShares MSCI Singapore | IShares MSCI vs. iShares MSCI Mexico | IShares MSCI vs. iShares MSCI Hong |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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