Correlation Between Barrick Gold and Talanx AG
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Talanx AG 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 Barrick Gold and Talanx AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrick Gold and Talanx AG, you can compare the effects of market volatilities on Barrick Gold and Talanx AG 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 Barrick Gold with a short position of Talanx AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Talanx AG.
Diversification Opportunities for Barrick Gold and Talanx AG
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barrick and Talanx is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold and Talanx AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talanx AG and Barrick Gold 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 Barrick Gold are associated (or correlated) with Talanx AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talanx AG has no effect on the direction of Barrick Gold i.e., Barrick Gold and Talanx AG go up and down completely randomly.
Pair Corralation between Barrick Gold and Talanx AG
Assuming the 90 days horizon Barrick Gold is expected to under-perform the Talanx AG. In addition to that, Barrick Gold is 1.34 times more volatile than Talanx AG. It trades about -0.11 of its total potential returns per unit of risk. Talanx AG is currently generating about 0.46 per unit of volatility. If you would invest 7,050 in Talanx AG on September 4, 2024 and sell it today you would earn a total of 915.00 from holding Talanx AG or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barrick Gold vs. Talanx AG
Performance |
| Timeline |
| Barrick Gold |
| Talanx AG |
Barrick Gold and Talanx AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Talanx AG
The main advantage of trading using opposite Barrick Gold and Talanx AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Talanx AG 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 Talanx AG will offset losses from the drop in Talanx AG's long position.| Barrick Gold vs. XLMedia PLC | Barrick Gold vs. Live Nation Entertainment | Barrick Gold vs. REMEDY ENTERTAINMENT OYJ | Barrick Gold vs. CNVISION MEDIA |
| Talanx AG vs. BJs Wholesale Club | Talanx AG vs. American Eagle Outfitters | Talanx AG vs. AEON STORES | Talanx AG vs. URBAN OUTFITTERS |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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