Correlation Between Barclays Capital and Themes Global

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

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

Diversification Opportunities for Barclays Capital and Themes Global

0.0

Correlation Coefficient

Barclays Capital  Themes Global

Pay attention - limited upside

The 3 months correlation between Barclays and Themes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and Themes Global Systemically in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Global System 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 Themes Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Global System has no effect on the direction of Barclays Capital i.e., Barclays Capital and Themes Global go up and down completely randomly.

Pair Corralation between Barclays Capital and Themes Global

If you would invest  3,329  in Themes Global Systemically on December 26, 2024 and sell it today you would earn a total of  612.00  from holding Themes Global Systemically or generate 18.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Barclays Capital  vs.  Themes Global Systemically

Barclays Capital

Risk-Adjusted Performance

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.

Themes Global System

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Themes Global Systemically are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Themes Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Barclays Capital and Themes Global

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

The idea behind Barclays Capital and Themes Global Systemically 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.