Correlation Between AGRICULTBK HADR/25 and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and Barrick Gold, you can compare the effects of market volatilities on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and Barrick Gold.
Diversification Opportunities for AGRICULTBK HADR/25 and Barrick Gold
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGRICULTBK and Barrick is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Barrick Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold and AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC 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 has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and Barrick Gold go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and Barrick Gold
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.23 times more return on investment than Barrick Gold. However, AGRICULTBK HADR/25 is 1.23 times more volatile than Barrick Gold. It trades about 0.06 of its potential returns per unit of risk. Barrick Gold is currently generating about 0.0 per unit of risk. If you would invest 739.00 in AGRICULTBK HADR25 YC on August 31, 2024 and sell it today you would earn a total of 391.00 from holding AGRICULTBK HADR25 YC or generate 52.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. Barrick Gold
Performance |
| Timeline |
| AGRICULTBK HADR/25 |
| Barrick Gold |
AGRICULTBK HADR/25 and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR/25 and Barrick Gold
The main advantage of trading using opposite AGRICULTBK HADR/25 and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 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.| AGRICULTBK HADR/25 vs. Electronic Arts | AGRICULTBK HADR/25 vs. Check Point Software | AGRICULTBK HADR/25 vs. Harmony Gold Mining | AGRICULTBK HADR/25 vs. Nucletron Electronic Aktiengesellschaft |
| Barrick Gold vs. Kaiser Aluminum | Barrick Gold vs. AGRICULTBK HADR25 YC | Barrick Gold vs. PARKEN Sport Entertainment | Barrick Gold vs. DAIRY FARM INTL |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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