Correlation Between Barclays Capital and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Spinnaker ETF 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 Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Spinnaker ETF Series, you can compare the effects of market volatilities on Barclays Capital and Spinnaker ETF 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 Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Spinnaker ETF.
Diversification Opportunities for Barclays Capital and Spinnaker ETF
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and Spinnaker is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series 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 Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of Barclays Capital i.e., Barclays Capital and Spinnaker ETF go up and down completely randomly.
Pair Corralation between Barclays Capital and Spinnaker ETF
If you would invest 1,021 in Spinnaker ETF Series on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Spinnaker ETF Series or generate 0.2% 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. Spinnaker ETF Series
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Spinnaker ETF Series |
Barclays Capital and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Spinnaker ETF
The main advantage of trading using opposite Barclays Capital and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.The idea behind Barclays Capital and Spinnaker ETF Series pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Spinnaker ETF vs. Schwab International Equity | Spinnaker ETF vs. Schwab Emerging Markets | Spinnaker ETF vs. Schwab Short Term Treasury | Spinnaker ETF vs. Schwab TIPS ETF |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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