Correlation Between NYSE Composite and BARCLAYS
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By analyzing existing cross correlation between NYSE Composite and BARCLAYS PLC, you can compare the effects of market volatilities on NYSE Composite and BARCLAYS 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 NYSE Composite with a short position of BARCLAYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and BARCLAYS.
Diversification Opportunities for NYSE Composite and BARCLAYS
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and BARCLAYS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and BARCLAYS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARCLAYS PLC and NYSE Composite 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 NYSE Composite are associated (or correlated) with BARCLAYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARCLAYS PLC has no effect on the direction of NYSE Composite i.e., NYSE Composite and BARCLAYS go up and down completely randomly.
Pair Corralation between NYSE Composite and BARCLAYS
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.82 times more return on investment than BARCLAYS. However, NYSE Composite is 1.22 times less risky than BARCLAYS. It trades about 0.24 of its potential returns per unit of risk. BARCLAYS PLC is currently generating about -0.38 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
NYSE Composite vs. BARCLAYS PLC
Performance |
| Timeline |
NYSE Composite and BARCLAYS Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
BARCLAYS PLC
Pair trading matchups for BARCLAYS
Pair Trading with NYSE Composite and BARCLAYS
The main advantage of trading using opposite NYSE Composite and BARCLAYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, BARCLAYS 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 BARCLAYS will offset losses from the drop in BARCLAYS's long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| BARCLAYS vs. AEP TEX INC | BARCLAYS vs. US BANK NATIONAL | BARCLAYS vs. Bank of America | BARCLAYS vs. Take Two Interactive Software |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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