Correlation Between Barrick Gold and Aeries Technology
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Aeries Technology 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 Barrick Gold and Aeries Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrick Gold Corp and Aeries Technology, you can compare the effects of market volatilities on Barrick Gold and Aeries Technology 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 Barrick Gold with a short position of Aeries Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Aeries Technology.
Diversification Opportunities for Barrick Gold and Aeries Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barrick and Aeries is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Aeries Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeries Technology and Barrick Gold 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 Barrick Gold Corp are associated (or correlated) with Aeries Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeries Technology has no effect on the direction of Barrick Gold i.e., Barrick Gold and Aeries Technology go up and down completely randomly.
Pair Corralation between Barrick Gold and Aeries Technology
Given the investment horizon of 90 days Barrick Gold Corp is not expected to generate positive returns. However, Barrick Gold Corp is 2.57 times less risky than Aeries Technology. It waists most of its returns potential to compensate for thr risk taken. Aeries Technology is generating about -0.07 per unit of risk. If you would invest 1,777 in Barrick Gold Corp on September 14, 2024 and sell it today you would lose (95.00) from holding Barrick Gold Corp or give up 5.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Aeries Technology
Performance |
| Timeline |
| Barrick Gold Corp |
| Aeries Technology |
Barrick Gold and Aeries Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Aeries Technology
The main advantage of trading using opposite Barrick Gold and Aeries Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Aeries Technology 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 Aeries Technology will offset losses from the drop in Aeries Technology's long position.| Barrick Gold vs. Fortitude Gold Corp | Barrick Gold vs. New Gold | Barrick Gold vs. Galiano Gold | Barrick Gold vs. GoldMining |
| Aeries Technology vs. Harmony Gold Mining | Aeries Technology vs. Anterix | Aeries Technology vs. Kandi Technologies Group | Aeries Technology vs. Perseus Mining Limited |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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