Correlation Between Abrdn Physical and Barclays Capital

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

By analyzing existing cross correlation between abrdn Physical Gold and Barclays Capital, you can compare the effects of market volatilities on Abrdn Physical and Barclays Capital 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 Abrdn Physical with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Physical and Barclays Capital.

Diversification Opportunities for Abrdn Physical and Barclays Capital

-0.26

Correlation Coefficient

Abrdn Physical  Barclays Capital

Very good diversification

The 3 months correlation between Abrdn and Barclays is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Gold and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and Abrdn Physical 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 abrdn Physical Gold are associated (or correlated) with Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Abrdn Physical i.e., Abrdn Physical and Barclays Capital go up and down completely randomly.

Pair Corralation between Abrdn Physical and Barclays Capital

If you would invest  2,478  in abrdn Physical Gold on October 20, 2024 and sell it today you would earn a total of  99.00  from holding abrdn Physical Gold or generate 4.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	10.0%
Values	Daily Returns

abrdn Physical Gold  vs.  Barclays Capital

abrdn Physical Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days abrdn Physical Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Abrdn Physical is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with Abrdn Physical and Barclays Capital

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

The idea behind abrdn Physical Gold and Barclays Capital 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.