Correlation Between Barclays Capital and KraneShares European
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and KraneShares European 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 KraneShares European into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and KraneShares European Carbon, you can compare the effects of market volatilities on Barclays Capital and KraneShares European 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 KraneShares European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and KraneShares European.
Diversification Opportunities for Barclays Capital and KraneShares European
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and KraneShares European Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares European 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 KraneShares European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares European has no effect on the direction of Barclays Capital i.e., Barclays Capital and KraneShares European go up and down completely randomly.
Pair Corralation between Barclays Capital and KraneShares European
If you would invest 2,129 in KraneShares European Carbon on November 27, 2024 and sell it today you would earn a total of 78.00 from holding KraneShares European Carbon or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Barclays Capital vs. KraneShares European Carbon
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| KraneShares European |
Barclays Capital and KraneShares European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and KraneShares European
The main advantage of trading using opposite Barclays Capital and KraneShares European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, KraneShares European 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 KraneShares European will offset losses from the drop in KraneShares European's long position.| Barclays Capital vs. Infinity Natural Resources, | Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP |
| KraneShares European vs. KraneShares California Carbon | KraneShares European vs. KraneShares Global Carbon | KraneShares European vs. iPath Series B |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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