Correlation Between Texas Capital and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Texas Capital and SPDR Barclays 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 Texas Capital and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Texas Capital Funds and SPDR Barclays Short, you can compare the effects of market volatilities on Texas Capital and SPDR Barclays 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 Texas Capital with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Texas Capital and SPDR Barclays.
Diversification Opportunities for Texas Capital and SPDR Barclays
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Texas and SPDR is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Texas Capital Funds and SPDR Barclays Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Short and Texas 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 Texas Capital Funds are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Short has no effect on the direction of Texas Capital i.e., Texas Capital and SPDR Barclays go up and down completely randomly.
Pair Corralation between Texas Capital and SPDR Barclays
Given the investment horizon of 90 days Texas Capital is expected to generate 1.42 times less return on investment than SPDR Barclays. But when comparing it to its historical volatility, Texas Capital Funds is 5.73 times less risky than SPDR Barclays. It trades about 0.88 of its potential returns per unit of risk. SPDR Barclays Short is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,891 in SPDR Barclays Short on May 30, 2025 and sell it today you would earn a total of 40.00 from holding SPDR Barclays Short or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Texas Capital Funds vs. SPDR Barclays Short
Performance |
| Timeline |
| Texas Capital Funds |
| SPDR Barclays Short |
Texas Capital and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Texas Capital and SPDR Barclays
The main advantage of trading using opposite Texas Capital and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Texas Capital position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Texas Capital vs. Vanguard 0 3 Month | Texas Capital vs. Global X Funds | Texas Capital vs. Vanguard Ultra Short Treasury | Texas Capital vs. WEEK |
| SPDR Barclays vs. SPDR Barclays Long | SPDR Barclays vs. SPDR Portfolio Intermediate | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. SPDR Barclays Intermediate |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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