Correlation Between Barclays Capital and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Federated Premier 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 Federated Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Federated Premier Municipal, you can compare the effects of market volatilities on Barclays Capital and Federated Premier 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 Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Federated Premier.
Diversification Opportunities for Barclays Capital and Federated Premier
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barclays and Federated is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier 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 Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Barclays Capital i.e., Barclays Capital and Federated Premier go up and down completely randomly.
Pair Corralation between Barclays Capital and Federated Premier
If you would invest 1,956 in Barclays Capital on September 1, 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 | 4.76% |
| Values | Daily Returns |
Barclays Capital vs. Federated Premier Municipal
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Federated Premier |
Barclays Capital and Federated Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Federated Premier
The main advantage of trading using opposite Barclays Capital and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Federated Premier 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 Federated Premier will offset losses from the drop in Federated Premier's long position.| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP | Barclays Capital vs. Vanguard Total Bond |
| Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance Municipal | Federated Premier vs. DTF Tax Free | Federated Premier vs. Aquagold International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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