Correlation Between Barclays Capital and Invesco CurrencyShares
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Invesco CurrencyShares 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 Invesco CurrencyShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Invesco CurrencyShares Australian, you can compare the effects of market volatilities on Barclays Capital and Invesco CurrencyShares 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 Invesco CurrencyShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Invesco CurrencyShares.
Diversification Opportunities for Barclays Capital and Invesco CurrencyShares
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Invesco is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Invesco CurrencyShares Austral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco CurrencyShares 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 Invesco CurrencyShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco CurrencyShares has no effect on the direction of Barclays Capital i.e., Barclays Capital and Invesco CurrencyShares go up and down completely randomly.
Pair Corralation between Barclays Capital and Invesco CurrencyShares
Considering the 90-day investment horizon Barclays Capital is expected to generate 307.94 times more return on investment than Invesco CurrencyShares. However, Barclays Capital is 307.94 times more volatile than Invesco CurrencyShares Australian. It trades about 0.18 of its potential returns per unit of risk. Invesco CurrencyShares Australian is currently generating about 0.0 per unit of risk. If you would invest 97.00 in Barclays Capital on August 27, 2024 and sell it today you would earn a total of 7,265 from holding Barclays Capital or generate 7489.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 32.86% |
| Values | Daily Returns |
Barclays Capital vs. Invesco CurrencyShares Austral
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco CurrencyShares |
Barclays Capital and Invesco CurrencyShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Invesco CurrencyShares
The main advantage of trading using opposite Barclays Capital and Invesco CurrencyShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Invesco CurrencyShares 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 Invesco CurrencyShares will offset losses from the drop in Invesco CurrencyShares' 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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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