Correlation Between Aldel Financial and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Aldel Financial 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 Aldel Financial and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Barrick Gold Corp, you can compare the effects of market volatilities on Aldel Financial 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 Aldel Financial with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Barrick Gold.
Diversification Opportunities for Aldel Financial and Barrick Gold
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aldel and Barrick is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp and Aldel Financial 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 Aldel Financial II 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 Corp has no effect on the direction of Aldel Financial i.e., Aldel Financial and Barrick Gold go up and down completely randomly.
Pair Corralation between Aldel Financial and Barrick Gold
Assuming the 90 days horizon Aldel Financial II is expected to generate 0.05 times more return on investment than Barrick Gold. However, Aldel Financial II is 18.72 times less risky than Barrick Gold. It trades about 0.0 of its potential returns per unit of risk. Barrick Gold Corp is currently generating about -0.29 per unit of risk. If you would invest 999.00 in Aldel Financial II on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Aldel Financial II or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aldel Financial II vs. Barrick Gold Corp
Performance |
| Timeline |
| Aldel Financial II |
| Barrick Gold Corp |
Aldel Financial and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Barrick Gold
The main advantage of trading using opposite Aldel Financial and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial 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.| Aldel Financial vs. RBC Bearings Incorporated | Aldel Financial vs. CECO Environmental Corp | Aldel Financial vs. EMCOR Group | Aldel Financial vs. Simpson Manufacturing |
| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |