Correlation Between Barclays Capital and IShares Expanded
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and IShares Expanded 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 IShares Expanded into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and iShares Expanded Tech, you can compare the effects of market volatilities on Barclays Capital and IShares Expanded 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 IShares Expanded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and IShares Expanded.
Diversification Opportunities for Barclays Capital and IShares Expanded
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barclays and IShares is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and iShares Expanded Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Expanded Tech 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 IShares Expanded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Expanded Tech has no effect on the direction of Barclays Capital i.e., Barclays Capital and IShares Expanded go up and down completely randomly.
Pair Corralation between Barclays Capital and IShares Expanded
If you would invest 9,947 in iShares Expanded Tech on August 30, 2024 and sell it today you would earn a total of 99.00 from holding iShares Expanded Tech or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Barclays Capital vs. iShares Expanded Tech
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Expanded Tech |
Barclays Capital and IShares Expanded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and IShares Expanded
The main advantage of trading using opposite Barclays Capital and IShares Expanded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, IShares Expanded 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 IShares Expanded will offset losses from the drop in IShares Expanded's long position.| Barclays Capital vs. iShares Silver Trust | Barclays Capital vs. VanEck Gold Miners | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. United States Oil |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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