Correlation Between Sparta Capital and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both Sparta Capital and Barclays ETN 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 Sparta Capital and Barclays ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparta Capital and Barclays ETN Shiller, you can compare the effects of market volatilities on Sparta Capital and Barclays ETN 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 Sparta Capital with a short position of Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparta Capital and Barclays ETN.
Diversification Opportunities for Sparta Capital and Barclays ETN
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sparta and Barclays is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sparta Capital and Barclays ETN Shiller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN Shiller and Sparta 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 Sparta Capital are associated (or correlated) with Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN Shiller has no effect on the direction of Sparta Capital i.e., Sparta Capital and Barclays ETN go up and down completely randomly.
Pair Corralation between Sparta Capital and Barclays ETN
Assuming the 90 days horizon Sparta Capital is expected to under-perform the Barclays ETN. In addition to that, Sparta Capital is 2.83 times more volatile than Barclays ETN Shiller. It trades about -0.09 of its total potential returns per unit of risk. Barclays ETN Shiller is currently generating about 0.18 per unit of volatility. If you would invest 2,717 in Barclays ETN Shiller on August 29, 2024 and sell it today you would earn a total of 479.00 from holding Barclays ETN Shiller or generate 17.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sparta Capital vs. Barclays ETN Shiller
Performance |
| Timeline |
| Sparta Capital |
| Barclays ETN Shiller |
Sparta Capital and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparta Capital and Barclays ETN
The main advantage of trading using opposite Sparta Capital and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparta Capital position performs unexpectedly, Barclays ETN 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 ETN will offset losses from the drop in Barclays ETN's long position.| Sparta Capital vs. Zurn Elkay Water | Sparta Capital vs. Federal Signal | Sparta Capital vs. Energy Recovery | Sparta Capital vs. CECO Environmental Corp |
| Barclays ETN vs. iShares MSCI USA | Barclays ETN vs. ABIVAX Socit Anonyme | Barclays ETN vs. HUMANA INC | Barclays ETN vs. SCOR PK |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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