Correlation Between Barclays Capital and IShares SP
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and IShares 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 IShares 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 iShares SP GSCI, you can compare the effects of market volatilities on Barclays Capital and IShares 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and IShares SP.
Diversification Opportunities for Barclays Capital and IShares SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and iShares SP GSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP GSCI 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP GSCI has no effect on the direction of Barclays Capital i.e., Barclays Capital and IShares SP go up and down completely randomly.
Pair Corralation between Barclays Capital and IShares SP
Considering the 90-day investment horizon Barclays Capital is expected to under-perform the IShares SP. In addition to that, Barclays Capital is 1.08 times more volatile than iShares SP GSCI. It trades about -0.03 of its total potential returns per unit of risk. iShares SP GSCI is currently generating about 0.0 per unit of volatility. If you would invest 2,437 in iShares SP GSCI on January 26, 2024 and sell it today you would lose (184.00) from holding iShares SP GSCI or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 61.41% |
| Values | Daily Returns |
Barclays Capital vs. iShares SP GSCI
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares SP GSCI |
Barclays Capital and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and IShares SP
The main advantage of trading using opposite Barclays Capital and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, IShares 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 IShares SP will offset losses from the drop in IShares SP's long position.| Barclays Capital vs. First Trust Global | Barclays Capital vs. UBS AG London | Barclays Capital vs. abrdn Bloomberg All |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |