Correlation Between Barclays Capital and Invesco DB
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Invesco DB 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 Invesco DB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Invesco DB Precious, you can compare the effects of market volatilities on Barclays Capital and Invesco DB 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 Invesco DB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Invesco DB.
Diversification Opportunities for Barclays Capital and Invesco DB
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and Invesco is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Invesco DB Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco DB Precious 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 Invesco DB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco DB Precious has no effect on the direction of Barclays Capital i.e., Barclays Capital and Invesco DB go up and down completely randomly.
Pair Corralation between Barclays Capital and Invesco DB
If you would invest 4,830 in Invesco DB Precious on September 1, 2024 and sell it today you would earn a total of 1,578 from holding Invesco DB Precious or generate 32.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Barclays Capital vs. Invesco DB Precious
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco DB Precious |
Barclays Capital and Invesco DB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Invesco DB
The main advantage of trading using opposite Barclays Capital and Invesco DB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Invesco DB 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 Invesco DB will offset losses from the drop in Invesco DB's long position.| Barclays Capital vs. Invesco DB Agriculture | Barclays Capital vs. Invesco DB Base | Barclays Capital vs. iPath Bloomberg Commodity | Barclays Capital vs. VanEck Agribusiness ETF |
| Invesco DB vs. Invesco DB Energy | Invesco DB vs. Invesco DB Base | Invesco DB vs. Invesco DB Oil | Invesco DB vs. iPath Bloomberg Commodity |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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