Correlation Between Barclays Capital and EUFX
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and EUFX 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 EUFX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and EUFX, you can compare the effects of market volatilities on Barclays Capital and EUFX 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 EUFX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and EUFX.
Diversification Opportunities for Barclays Capital and EUFX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barclays and EUFX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and EUFX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EUFX 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 EUFX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EUFX has no effect on the direction of Barclays Capital i.e., Barclays Capital and EUFX go up and down completely randomly.
Pair Corralation between Barclays Capital and EUFX
If you would invest (100.00) in EUFX on January 25, 2024 and sell it today you would earn a total of 100.00 from holding EUFX or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays Capital vs. EUFX
Performance |
| Timeline |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EUFX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barclays Capital and EUFX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays Capital and EUFX
The main advantage of trading using opposite Barclays Capital and EUFX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, EUFX 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 EUFX will offset losses from the drop in EUFX's long position.| Barclays Capital vs. ProShares UltraShort FTSE | Barclays Capital vs. ProShares UltraShort Gold | Barclays Capital vs. ProShares UltraShort Silver |
| EUFX vs. ProShares UltraShort FTSE | EUFX vs. ProShares UltraShort Gold | EUFX vs. ProShares UltraShort Silver |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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