Correlation Between Barclays Capital and Overlay Shares
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Overlay Shares 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 Overlay Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Overlay Shares Foreign, you can compare the effects of market volatilities on Barclays Capital and Overlay Shares 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 Overlay Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Overlay Shares.
Diversification Opportunities for Barclays Capital and Overlay Shares
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Overlay is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Overlay Shares Foreign in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Overlay Shares Foreign 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 Overlay Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Overlay Shares Foreign has no effect on the direction of Barclays Capital i.e., Barclays Capital and Overlay Shares go up and down completely randomly.
Pair Corralation between Barclays Capital and Overlay Shares
If you would invest 2,429 in Overlay Shares Foreign on August 28, 2024 and sell it today you would earn a total of 28.00 from holding Overlay Shares Foreign or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Barclays Capital vs. Overlay Shares Foreign
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Overlay Shares Foreign |
Barclays Capital and Overlay Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Overlay Shares
The main advantage of trading using opposite Barclays Capital and Overlay Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Overlay Shares 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 Overlay Shares will offset losses from the drop in Overlay Shares' 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 |
| Overlay Shares vs. Overlay Shares Core | Overlay Shares vs. Overlay Shares Large | Overlay Shares vs. OVS SpA | Overlay Shares vs. Overlay Shares Municipal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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