Correlation Between Barclays Capital and WisdomTree Continuous
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and WisdomTree Continuous 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 WisdomTree Continuous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and WisdomTree Continuous Commodity, you can compare the effects of market volatilities on Barclays Capital and WisdomTree Continuous 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 WisdomTree Continuous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and WisdomTree Continuous.
Diversification Opportunities for Barclays Capital and WisdomTree Continuous
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and WisdomTree is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and WisdomTree Continuous Commodit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Continuous 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 WisdomTree Continuous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Continuous has no effect on the direction of Barclays Capital i.e., Barclays Capital and WisdomTree Continuous go up and down completely randomly.
Pair Corralation between Barclays Capital and WisdomTree Continuous
If you would invest 1,627 in WisdomTree Continuous Commodity on September 4, 2024 and sell it today you would earn a total of 260.00 from holding WisdomTree Continuous Commodity or generate 15.98% 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. WisdomTree Continuous Commodit
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| WisdomTree Continuous |
Barclays Capital and WisdomTree Continuous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and WisdomTree Continuous
The main advantage of trading using opposite Barclays Capital and WisdomTree Continuous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, WisdomTree Continuous 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 WisdomTree Continuous will offset losses from the drop in WisdomTree Continuous' long position.| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. Vanguard Total Bond | Barclays Capital vs. Vanguard Value Index |
| WisdomTree Continuous vs. iPath Bloomberg Commodity | WisdomTree Continuous vs. iShares SP GSCI | WisdomTree Continuous vs. Invesco DB Precious |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |