Correlation Between Barclays Capital and Invesco SP
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Invesco SP 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 SP 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 SP 500, you can compare the effects of market volatilities on Barclays Capital and Invesco SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Invesco SP.
Diversification Opportunities for Barclays Capital and Invesco SP
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barclays and Invesco is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Invesco SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco SP 500 has no effect on the direction of Barclays Capital i.e., Barclays Capital and Invesco SP go up and down completely randomly.
Pair Corralation between Barclays Capital and Invesco SP
If you would invest 7,749 in Invesco SP 500 on August 26, 2024 and sell it today you would earn a total of 1,856 from holding Invesco SP 500 or generate 23.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Barclays Capital vs. Invesco SP 500
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco SP 500 |
Barclays Capital and Invesco SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Invesco SP
The main advantage of trading using opposite Barclays Capital and Invesco SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Invesco SP 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 SP will offset losses from the drop in Invesco SP'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 |
| Invesco SP vs. Invesco SP 500 | Invesco SP vs. Invesco SP SmallCap | Invesco SP vs. Invesco SP MidCap | Invesco SP vs. Invesco SP MidCap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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