Correlation Between Golden Matrix and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Golden Matrix 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 Golden Matrix and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Matrix Group and Barrick Gold Corp, you can compare the effects of market volatilities on Golden Matrix 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 Golden Matrix with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and Barrick Gold.
Diversification Opportunities for Golden Matrix and Barrick Gold
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Golden and Barrick is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group 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 Golden Matrix 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 Golden Matrix Group 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 Golden Matrix i.e., Golden Matrix and Barrick Gold go up and down completely randomly.
Pair Corralation between Golden Matrix and Barrick Gold
Given the investment horizon of 90 days Golden Matrix Group is expected to generate 2.35 times more return on investment than Barrick Gold. However, Golden Matrix is 2.35 times more volatile than Barrick Gold Corp. It trades about 0.13 of its potential returns per unit of risk. Barrick Gold Corp is currently generating about -0.34 per unit of risk. If you would invest 223.00 in Golden Matrix Group on August 23, 2024 and sell it today you would earn a total of 29.00 from holding Golden Matrix Group or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Golden Matrix Group vs. Barrick Gold Corp
Performance |
| Timeline |
| Golden Matrix Group |
| Barrick Gold Corp |
Golden Matrix and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Matrix and Barrick Gold
The main advantage of trading using opposite Golden Matrix and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Matrix 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.| Golden Matrix vs. i3 Interactive | Golden Matrix vs. GameSquare Holdings | Golden Matrix vs. Playstudios | Golden Matrix vs. Snail, Class A |
| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Kinross Gold | Barrick Gold vs. Gold Fields Ltd |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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