Correlation Between Barclays Capital and IShares Silver
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and IShares Silver 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 Silver 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 Silver Trust, you can compare the effects of market volatilities on Barclays Capital and IShares Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and IShares Silver.
Diversification Opportunities for Barclays Capital and IShares Silver
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and IShares is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and IShares Silver Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares Silver 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 IShares Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares Silver Trust has no effect on the direction of Barclays Capital i.e., Barclays Capital and IShares Silver go up and down completely randomly.
Pair Corralation between Barclays Capital and IShares Silver
Considering the 90-day investment horizon Barclays Capital is expected to generate 19.0 times less return on investment than IShares Silver. But when comparing it to its historical volatility, Barclays Capital is 1.18 times less risky than IShares Silver. It trades about 0.0 of its potential returns per unit of risk. IShares Silver Trust is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,315 in IShares Silver Trust on December 30, 2023 and sell it today you would lose (40.00) from holding IShares Silver Trust or give up 1.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 56.48% |
Values | Daily Returns |
Barclays Capital vs. IShares Silver Trust
Performance |
Timeline |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
IShares Silver Trust |
Barclays Capital and IShares Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays Capital and IShares Silver
The main advantage of trading using opposite Barclays Capital and IShares Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, IShares Silver 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 Silver will offset losses from the drop in IShares Silver's long position.Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. Vanguard Mid Cap Index | Barclays Capital vs. Vanguard Small Cap Index | Barclays Capital vs. Microsoft |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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