Correlation Between China Aircraft and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both China Aircraft 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 China Aircraft and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aircraft Leasing and Barrick Gold Corp, you can compare the effects of market volatilities on China Aircraft 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 China Aircraft with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Barrick Gold.
Diversification Opportunities for China Aircraft and Barrick Gold
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Barrick is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing 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 China Aircraft 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 China Aircraft Leasing 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 China Aircraft i.e., China Aircraft and Barrick Gold go up and down completely randomly.
Pair Corralation between China Aircraft and Barrick Gold
If you would invest 40.00 in China Aircraft Leasing on August 28, 2024 and sell it today you would earn a total of 0.00 from holding China Aircraft Leasing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. Barrick Gold Corp
Performance |
| Timeline |
| China Aircraft Leasing |
| Barrick Gold Corp |
China Aircraft and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Barrick Gold
The main advantage of trading using opposite China Aircraft and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft 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.| China Aircraft vs. Grocery Outlet Holding | China Aircraft vs. Turning Point Brands | China Aircraft vs. Marfrig Global Foods | China Aircraft vs. FitLife Brands, Common |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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