Correlation Between Barclays Capital and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Franklin FTSE 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 Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Franklin FTSE Europe, you can compare the effects of market volatilities on Barclays Capital and Franklin FTSE 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 Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Franklin FTSE.
Diversification Opportunities for Barclays Capital and Franklin FTSE
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Franklin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Franklin FTSE Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE 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 Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Europe has no effect on the direction of Barclays Capital i.e., Barclays Capital and Franklin FTSE go up and down completely randomly.
Pair Corralation between Barclays Capital and Franklin FTSE
If you would invest 7,362 in Barclays Capital on August 29, 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 | 4.55% |
| Values | Daily Returns |
Barclays Capital vs. Franklin FTSE Europe
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin FTSE Europe |
Barclays Capital and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Franklin FTSE
The main advantage of trading using opposite Barclays Capital and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE'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 |
| Franklin FTSE vs. Franklin FTSE United | Franklin FTSE vs. SPDR Portfolio Europe | Franklin FTSE vs. Franklin FTSE Germany | Franklin FTSE vs. Franklin FTSE Japan |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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