Correlation Between Barclays Capital and Invesco Optimum
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Invesco Optimum 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 Optimum 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 Optimum Yield, you can compare the effects of market volatilities on Barclays Capital and Invesco Optimum 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 Optimum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Invesco Optimum.
Diversification Opportunities for Barclays Capital and Invesco Optimum
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and Invesco is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Invesco Optimum Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Optimum Yield 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 Optimum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Optimum Yield has no effect on the direction of Barclays Capital i.e., Barclays Capital and Invesco Optimum go up and down completely randomly.
Pair Corralation between Barclays Capital and Invesco Optimum
If you would invest 1,383 in Invesco Optimum Yield on January 20, 2024 and sell it today you would earn a total of 25.00 from holding Invesco Optimum Yield or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Barclays Capital vs. Invesco Optimum Yield
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco Optimum Yield |
Barclays Capital and Invesco Optimum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Invesco Optimum
The main advantage of trading using opposite Barclays Capital and Invesco Optimum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Invesco Optimum 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 Optimum will offset losses from the drop in Invesco Optimum's long position.| Barclays Capital vs. First Trust Global | Barclays Capital vs. UBS AG London | Barclays Capital vs. abrdn Bloomberg All |
| Invesco Optimum vs. iShares GSCI Commodity | Invesco Optimum vs. First Trust Global | Invesco Optimum vs. iShares SP GSCI | Invesco Optimum vs. Invesco DB Commodity |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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