Correlation Between XLMedia PLC and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both XLMedia 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 XLMedia 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 XLMedia PLC and Barrick Gold, you can compare the effects of market volatilities on XLMedia 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 XLMedia PLC with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Barrick Gold.
Diversification Opportunities for XLMedia PLC and Barrick Gold
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XLMedia and Barrick is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Barrick Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold and XLMedia 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 XLMedia PLC 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 XLMedia PLC i.e., XLMedia PLC and Barrick Gold go up and down completely randomly.
Pair Corralation between XLMedia PLC and Barrick Gold
If you would invest 1,632 in Barrick Gold on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Barrick Gold or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Barrick Gold
Performance |
| Timeline |
| XLMedia PLC |
| Barrick Gold |
XLMedia PLC and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Barrick Gold
The main advantage of trading using opposite XLMedia PLC and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia 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.| XLMedia PLC vs. CENTURIA OFFICE REIT | XLMedia PLC vs. Safety Insurance Group | XLMedia PLC vs. Selective Insurance Group | XLMedia PLC vs. bet at home AG |
| Barrick Gold vs. Franco Nevada | Barrick Gold vs. Superior Plus Corp | Barrick Gold vs. SIVERS SEMICONDUCTORS AB | Barrick Gold vs. Norsk Hydro ASA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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