Correlation Between FibroGen and Barclays PLC
Can any of the company-specific risk be diversified away by investing in both FibroGen 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 FibroGen and Barclays PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibroGen and Barclays PLC, you can compare the effects of market volatilities on FibroGen 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 FibroGen with a short position of Barclays PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibroGen and Barclays PLC.
Diversification Opportunities for FibroGen and Barclays PLC
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FibroGen and Barclays is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding FibroGen and Barclays PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC and FibroGen 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 FibroGen 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 FibroGen i.e., FibroGen and Barclays PLC go up and down completely randomly.
Pair Corralation between FibroGen and Barclays PLC
Assuming the 90 days trading horizon FibroGen is expected to generate 1.19 times less return on investment than Barclays PLC. In addition to that, FibroGen is 4.35 times more volatile than Barclays PLC. It trades about 0.03 of its total potential returns per unit of risk. Barclays PLC is currently generating about 0.15 per unit of volatility. If you would invest 13,014 in Barclays PLC on November 9, 2024 and sell it today you would earn a total of 17,486 from holding Barclays PLC or generate 134.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FibroGen vs. Barclays PLC
Performance |
| Timeline |
| FibroGen |
| Barclays PLC |
FibroGen and Barclays PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibroGen and Barclays PLC
The main advantage of trading using opposite FibroGen and Barclays PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibroGen 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.| FibroGen vs. GMxico Transportes SAB | FibroGen vs. Grupo Hotelero Santa | FibroGen vs. Grupo Carso SAB | FibroGen vs. Cognizant Technology Solutions |
| Barclays PLC vs. Deutsche Bank Aktiengesellschaft | Barclays PLC vs. Genworth Financial | Barclays PLC vs. McEwen Mining | Barclays PLC vs. Prudential Financial |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |