Correlation Between VanEck Gold and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both VanEck Gold and Barclays Capital 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 VanEck Gold and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Gold Miners and Barclays Capital, you can compare the effects of market volatilities on VanEck Gold and Barclays Capital 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 VanEck Gold with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Gold and Barclays Capital.
Diversification Opportunities for VanEck Gold and Barclays Capital
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between VanEck and Barclays is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Gold Miners and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and VanEck Gold 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 VanEck Gold Miners are associated (or correlated) with Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of VanEck Gold i.e., VanEck Gold and Barclays Capital go up and down completely randomly.
Pair Corralation between VanEck Gold and Barclays Capital
If you would invest 7,362 in Barclays Capital on August 30, 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 | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
VanEck Gold Miners vs. Barclays Capital
Performance |
| Timeline |
| VanEck Gold Miners |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck Gold and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Gold and Barclays Capital
The main advantage of trading using opposite VanEck Gold and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Gold position performs unexpectedly, Barclays Capital 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 Capital will offset losses from the drop in Barclays Capital's long position.| VanEck Gold vs. VanEck Junior Gold | VanEck Gold vs. iShares Silver Trust | VanEck Gold vs. SPDR Gold Shares | VanEck Gold vs. Newmont Goldcorp Corp |
| Barclays Capital vs. iShares Silver Trust | Barclays Capital vs. VanEck Gold Miners | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. United States Oil |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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