Correlation Between Allegheny Technologies and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies 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 Allegheny Technologies and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegheny Technologies Incorporated and Barrick Gold Corp, you can compare the effects of market volatilities on Allegheny Technologies 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 Allegheny Technologies with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and Barrick Gold.
Diversification Opportunities for Allegheny Technologies and Barrick Gold
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allegheny and Barrick is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo 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 Allegheny Technologies 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 Allegheny Technologies Incorporated 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 Allegheny Technologies i.e., Allegheny Technologies and Barrick Gold go up and down completely randomly.
Pair Corralation between Allegheny Technologies and Barrick Gold
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to under-perform the Barrick Gold. In addition to that, Allegheny Technologies is 1.59 times more volatile than Barrick Gold Corp. It trades about -0.06 of its total potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.18 per unit of volatility. If you would invest 1,575 in Barrick Gold Corp on January 15, 2025 and sell it today you would earn a total of 457.00 from holding Barrick Gold Corp or generate 29.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. Barrick Gold Corp
Performance |
| Timeline |
| Allegheny Technologies |
| Barrick Gold Corp |
Allegheny Technologies and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and Barrick Gold
The main advantage of trading using opposite Allegheny Technologies and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies 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.| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries | Allegheny Technologies vs. Northwest Pipe |
| 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.
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