Correlation Between Barrick Gold and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Aerofoam Metals 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 Aerofoam Metals 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 Aerofoam Metals, you can compare the effects of market volatilities on Barrick Gold and Aerofoam Metals 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 Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Aerofoam Metals.
Diversification Opportunities for Barrick Gold and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals 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 Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of Barrick Gold i.e., Barrick Gold and Aerofoam Metals go up and down completely randomly.
Pair Corralation between Barrick Gold and Aerofoam Metals
If you would invest 1,702 in Barrick Gold Corp on September 13, 2024 and sell it today you would earn a total of 52.00 from holding Barrick Gold Corp or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barrick Gold Corp vs. Aerofoam Metals
Performance |
| Timeline |
| Barrick Gold Corp |
| Aerofoam Metals |
Barrick Gold and Aerofoam Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Aerofoam Metals
The main advantage of trading using opposite Barrick Gold and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
| Aerofoam Metals vs. Arhaus Inc | Aerofoam Metals vs. Floor Decor Holdings | Aerofoam Metals vs. Live Ventures | Aerofoam Metals vs. ATT Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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