Correlation Between Barclays Capital and Invesco BulletShares

Can any of the company-specific risk be diversified away by investing in both Barclays Capital and Invesco BulletShares 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 Invesco BulletShares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Barclays Capital and Invesco BulletShares 2029, you can compare the effects of market volatilities on Barclays Capital and Invesco BulletShares 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 Invesco BulletShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and Invesco BulletShares.

Diversification Opportunities for Barclays Capital and Invesco BulletShares

-0.71

Correlation Coefficient

Barclays Capital  Invesco BulletShares

Pay attention - limited upside

The 3 months correlation between Barclays and Invesco is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Invesco BulletShares 2029 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco BulletShares 2029 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 Invesco BulletShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco BulletShares 2029 has no effect on the direction of Barclays Capital i.e., Barclays Capital and Invesco BulletShares go up and down completely randomly.

Pair Corralation between Barclays Capital and Invesco BulletShares

If you would invest  1,851  in Invesco BulletShares 2029 on September 2, 2024 and sell it today you would earn a total of  2.00  from holding Invesco BulletShares 2029 or generate 0.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Barclays Capital  vs.  Invesco BulletShares 2029

Barclays Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barclays Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Barclays Capital is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Invesco BulletShares 2029

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Invesco BulletShares 2029 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Invesco BulletShares is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Barclays Capital and Invesco BulletShares

The main advantage of trading using opposite Barclays Capital and Invesco BulletShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, Invesco BulletShares 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 Invesco BulletShares will offset losses from the drop in Invesco BulletShares' long position.

The idea behind Barclays Capital and Invesco BulletShares 2029 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.