Correlation Between Barclays Capital and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and SPDR MSCI 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 SPDR MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and SPDR MSCI USA, you can compare the effects of market volatilities on Barclays Capital and SPDR MSCI 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 SPDR MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and SPDR MSCI.
Diversification Opportunities for Barclays Capital and SPDR MSCI
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and SPDR is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and SPDR MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI USA 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 SPDR MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI USA has no effect on the direction of Barclays Capital i.e., Barclays Capital and SPDR MSCI go up and down completely randomly.
Pair Corralation between Barclays Capital and SPDR MSCI
Allowing for the 90-day total investment horizon Barclays Capital is expected to generate 100.2 times less return on investment than SPDR MSCI. In addition to that, Barclays Capital is 2.37 times more volatile than SPDR MSCI USA. It trades about 0.0 of its total potential returns per unit of risk. SPDR MSCI USA is currently generating about 0.05 per unit of volatility. If you would invest 11,268 in SPDR MSCI USA on January 25, 2024 and sell it today you would earn a total of 2,819 from holding SPDR MSCI USA or generate 25.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 61.74% |
| Values | Daily Returns |
Barclays Capital vs. SPDR MSCI USA
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR MSCI USA |
Barclays Capital and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and SPDR MSCI
The main advantage of trading using opposite Barclays Capital and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, SPDR MSCI 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 SPDR MSCI will offset losses from the drop in SPDR MSCI'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 |
| SPDR MSCI vs. SPDR SSGA Large | SPDR MSCI vs. SPDR MSCI EAFE | SPDR MSCI vs. SPDR MSCI Emerging | SPDR MSCI vs. SPDR Russell 1000 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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