Correlation Between Barclays Capital and Tema ETF
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Tema 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 Tema 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 Tema ETF Trust, you can compare the effects of market volatilities on Barclays Capital and Tema 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 Tema ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Tema ETF.
Diversification Opportunities for Barclays Capital and Tema ETF
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barclays and Tema is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Tema ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema ETF Trust 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 Tema ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema ETF Trust has no effect on the direction of Barclays Capital i.e., Barclays Capital and Tema ETF go up and down completely randomly.
Pair Corralation between Barclays Capital and Tema ETF
If you would invest 3,843 in Tema ETF Trust on August 27, 2024 and sell it today you would earn a total of 260.00 from holding Tema ETF Trust or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barclays Capital vs. Tema ETF Trust
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tema ETF Trust |
Barclays Capital and Tema ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Tema ETF
The main advantage of trading using opposite Barclays Capital and Tema ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Tema 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 Tema ETF will offset losses from the drop in Tema ETF's long position.The idea behind Barclays Capital and Tema ETF Trust 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.| Tema ETF vs. iShares Dividend and | Tema ETF vs. Martin Currie Sustainable | Tema ETF vs. VictoryShares THB Mid | Tema ETF vs. Mast Global Battery |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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