Correlation Between Barclays Capital and Teucrium Soybean
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Teucrium Soybean 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 Teucrium Soybean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Teucrium Soybean, you can compare the effects of market volatilities on Barclays Capital and Teucrium Soybean 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 Teucrium Soybean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Teucrium Soybean.
Diversification Opportunities for Barclays Capital and Teucrium Soybean
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barclays and Teucrium is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Teucrium Soybean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teucrium Soybean 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 Teucrium Soybean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teucrium Soybean has no effect on the direction of Barclays Capital i.e., Barclays Capital and Teucrium Soybean go up and down completely randomly.
Pair Corralation between Barclays Capital and Teucrium Soybean
Allowing for the 90-day total investment horizon Barclays Capital is expected to generate 1.75 times more return on investment than Teucrium Soybean. However, Barclays Capital is 1.75 times more volatile than Teucrium Soybean. It trades about 0.05 of its potential returns per unit of risk. Teucrium Soybean is currently generating about -0.05 per unit of risk. If you would invest 4,776 in Barclays Capital on August 31, 2024 and sell it today you would earn a total of 624.00 from holding Barclays Capital or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.91% |
| Values | Daily Returns |
Barclays Capital vs. Teucrium Soybean
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Teucrium Soybean |
Barclays Capital and Teucrium Soybean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Teucrium Soybean
The main advantage of trading using opposite Barclays Capital and Teucrium Soybean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Teucrium Soybean 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 Teucrium Soybean will offset losses from the drop in Teucrium Soybean's long position.The idea behind Barclays Capital and Teucrium Soybean pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Teucrium Soybean vs. Teucrium Corn | Teucrium Soybean vs. Teucrium Wheat | Teucrium Soybean vs. Teucrium Sugar |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |