Correlation Between Dow Jones and BARRICK
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By analyzing existing cross correlation between Dow Jones Industrial and BARRICK PD AUSTRALIA, you can compare the effects of market volatilities on Dow Jones and BARRICK 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 Dow Jones with a short position of BARRICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and BARRICK.
Diversification Opportunities for Dow Jones and BARRICK
Very good diversification
The 3 months correlation between Dow and BARRICK is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and BARRICK PD AUSTRALIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARRICK PD AUSTRALIA and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with BARRICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARRICK PD AUSTRALIA has no effect on the direction of Dow Jones i.e., Dow Jones and BARRICK go up and down completely randomly.
Pair Corralation between Dow Jones and BARRICK
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.46 times more return on investment than BARRICK. However, Dow Jones Industrial is 2.19 times less risky than BARRICK. It trades about 0.2 of its potential returns per unit of risk. BARRICK PD AUSTRALIA is currently generating about 0.07 per unit of risk. If you would invest 4,093,693 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 397,372 from holding Dow Jones Industrial or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.5% |
| Values | Daily Returns |
Dow Jones Industrial vs. BARRICK PD AUSTRALIA
Performance |
| Timeline |
Dow Jones and BARRICK Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
BARRICK PD AUSTRALIA
Pair trading matchups for BARRICK
Pair Trading with Dow Jones and BARRICK
The main advantage of trading using opposite Dow Jones and BARRICK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, BARRICK 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 will offset losses from the drop in BARRICK's long position.| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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