Correlation Between United States and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both United States and Barclays Capital 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 United States and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Oil and Barclays Capital, you can compare the effects of market volatilities on United States and Barclays Capital 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 United States with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Barclays Capital.
Diversification Opportunities for United States and Barclays Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between United and Barclays is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding United States Oil and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and United States 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 United States Oil are associated (or correlated) with Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of United States i.e., United States and Barclays Capital go up and down completely randomly.
Pair Corralation between United States and Barclays Capital
If you would invest 2,842 in Barclays Capital on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Barclays Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
United States Oil vs. Barclays Capital
Performance |
| Timeline |
| United States Oil |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United States and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Barclays Capital
The main advantage of trading using opposite United States and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.| United States vs. Invesco DB Oil | United States vs. United States Gasoline | United States vs. United States Brent | United States vs. United States 12 |
| Barclays Capital vs. United States Oil | Barclays Capital vs. Invesco DB Oil | Barclays Capital vs. ProShares Ultra Bloomberg | Barclays Capital vs. United States Natural |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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