Correlation Between TRAINLINE PLC and Barrick Gold

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TRAINLINE PLC and Barrick Gold 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 TRAINLINE PLC and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRAINLINE PLC LS and Barrick Gold, you can compare the effects of market volatilities on TRAINLINE PLC and Barrick Gold 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 TRAINLINE PLC with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAINLINE PLC and Barrick Gold.

Diversification Opportunities for TRAINLINE PLC and Barrick Gold

TRAINLINEBarrickDiversified AwayTRAINLINEBarrickDiversified Away100%
-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between TRAINLINE and Barrick is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding TRAINLINE PLC LS and Barrick Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold and TRAINLINE PLC 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 TRAINLINE PLC LS are associated (or correlated) with Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold has no effect on the direction of TRAINLINE PLC i.e., TRAINLINE PLC and Barrick Gold go up and down completely randomly.

Pair Corralation between TRAINLINE PLC and Barrick Gold

Assuming the 90 days trading horizon TRAINLINE PLC LS is expected to under-perform the Barrick Gold. In addition to that, TRAINLINE PLC is 1.62 times more volatile than Barrick Gold. It trades about -0.15 of its total potential returns per unit of risk. Barrick Gold is currently generating about 0.26 per unit of volatility. If you would invest  1,531  in Barrick Gold on November 17, 2024 and sell it today you would earn a total of  188.00  from holding Barrick Gold or generate 12.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

TRAINLINE PLC LS  vs.  Barrick Gold

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025 -15-10-505
JavaScript chart by amCharts 3.21.152T9A ABR
       Timeline  
TRAINLINE PLC LS 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days TRAINLINE PLC LS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4.24.44.64.855.2
Barrick Gold 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Barrick Gold are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Barrick Gold may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1515.51616.51717.5

TRAINLINE PLC and Barrick Gold Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.34-3.25-2.16-1.070.00.982.03.024.035.05 0.040.050.060.070.080.09
JavaScript chart by amCharts 3.21.152T9A ABR
       Returns  

Pair Trading with TRAINLINE PLC and Barrick Gold

The main advantage of trading using opposite TRAINLINE PLC and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAINLINE PLC position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.
The idea behind TRAINLINE PLC LS and Barrick Gold 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.
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device