Correlation Between Barclays Capital and Teucrium Wheat

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

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

Diversification Opportunities for Barclays Capital and Teucrium Wheat

-0.77

Correlation Coefficient

Barclays Capital  Teucrium Wheat

Pay attention - limited upside

The 3 months correlation between Barclays and Teucrium is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Teucrium Wheat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teucrium Wheat 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 Teucrium Wheat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teucrium Wheat has no effect on the direction of Barclays Capital i.e., Barclays Capital and Teucrium Wheat go up and down completely randomly.

Pair Corralation between Barclays Capital and Teucrium Wheat

If you would invest  3,629  in Barclays Capital on September 18, 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	Weak
Accuracy	1.59%
Values	Daily Returns

Barclays Capital  vs.  Teucrium Wheat

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 somewhat strong forward indicators, Barclays Capital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Teucrium Wheat

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teucrium Wheat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Barclays Capital and Teucrium Wheat

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

The idea behind Barclays Capital and Teucrium Wheat 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.