Correlation Between Barclays Capital and Franklin Liberty
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Franklin Liberty 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 Franklin Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and Franklin Liberty Low, you can compare the effects of market volatilities on Barclays Capital and Franklin Liberty 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 Franklin Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Franklin Liberty.
Diversification Opportunities for Barclays Capital and Franklin Liberty
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barclays and Franklin is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Franklin Liberty Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Liberty Low 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 Franklin Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Liberty Low has no effect on the direction of Barclays Capital i.e., Barclays Capital and Franklin Liberty go up and down completely randomly.
Pair Corralation between Barclays Capital and Franklin Liberty
If you would invest 4,513 in Barclays Capital on February 6, 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 Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barclays Capital vs. Franklin Liberty Low
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Liberty Low |
Barclays Capital and Franklin Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and Franklin Liberty
The main advantage of trading using opposite Barclays Capital and Franklin Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Franklin Liberty 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 Franklin Liberty will offset losses from the drop in Franklin Liberty's long position.| Barclays Capital vs. Vanguard Total Stock | Barclays Capital vs. SPDR SP 500 | Barclays Capital vs. iShares Core SP | Barclays Capital vs. Vanguard Total Bond |
| Franklin Liberty vs. Anfield Universal Fixed | Franklin Liberty vs. Aptus Drawdown Managed | Franklin Liberty vs. HUMANA INC | Franklin Liberty vs. Aquagold International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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