Correlation Between Barclays Capital and HDLV
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and HDLV 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 HDLV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and HDLV, you can compare the effects of market volatilities on Barclays Capital and HDLV 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 HDLV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and HDLV.
Diversification Opportunities for Barclays Capital and HDLV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and HDLV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and HDLV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HDLV 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 HDLV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HDLV has no effect on the direction of Barclays Capital i.e., Barclays Capital and HDLV go up and down completely randomly.
Pair Corralation between Barclays Capital and HDLV
If you would invest (100.00) in HDLV on January 20, 2024 and sell it today you would earn a total of 100.00 from holding HDLV or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Barclays Capital vs. HDLV
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HDLV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barclays Capital and HDLV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and HDLV
The main advantage of trading using opposite Barclays Capital and HDLV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, HDLV 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 HDLV will offset losses from the drop in HDLV'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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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