Correlation Between Barclays Capital and ProShares MSCI
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and ProShares MSCI 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 ProShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and ProShares MSCI Europe, you can compare the effects of market volatilities on Barclays Capital and ProShares MSCI 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 ProShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and ProShares MSCI.
Diversification Opportunities for Barclays Capital and ProShares MSCI
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and ProShares is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and ProShares MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI Europe 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 ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Europe has no effect on the direction of Barclays Capital i.e., Barclays Capital and ProShares MSCI go up and down completely randomly.
Pair Corralation between Barclays Capital and ProShares MSCI
If you would invest 7,362 in Barclays Capital on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Barclays Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Barclays Capital vs. ProShares MSCI Europe
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares MSCI Europe |
Barclays Capital and ProShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and ProShares MSCI
The main advantage of trading using opposite Barclays Capital and ProShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, ProShares MSCI 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 ProShares MSCI will offset losses from the drop in ProShares MSCI's long position.| Barclays Capital vs. Aquagold International | Barclays Capital vs. Morningstar Unconstrained Allocation | Barclays Capital vs. High Yield Municipal Fund | Barclays Capital vs. Thrivent High Yield |
| ProShares MSCI vs. WisdomTree Europe Hedged | ProShares MSCI vs. WisdomTree International Hedged | ProShares MSCI vs. WisdomTree Emerging Markets | ProShares MSCI vs. WisdomTree Dynamic Currency |
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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