Correlation Between Barrick Gold and CDTi Advanced
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and CDTi Advanced 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 CDTi Advanced 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 CDTi Advanced Materials, you can compare the effects of market volatilities on Barrick Gold and CDTi Advanced 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 CDTi Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and CDTi Advanced.
Diversification Opportunities for Barrick Gold and CDTi Advanced
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barrick and CDTi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and CDTi Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDTi Advanced Materials 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 CDTi Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDTi Advanced Materials has no effect on the direction of Barrick Gold i.e., Barrick Gold and CDTi Advanced go up and down completely randomly.
Pair Corralation between Barrick Gold and CDTi Advanced
If you would invest 15.00 in CDTi Advanced Materials on September 2, 2024 and sell it today you would earn a total of 0.00 from holding CDTi Advanced Materials or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barrick Gold Corp vs. CDTi Advanced Materials
Performance |
| Timeline |
| Barrick Gold Corp |
| CDTi Advanced Materials |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barrick Gold and CDTi Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and CDTi Advanced
The main advantage of trading using opposite Barrick Gold and CDTi Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, CDTi Advanced 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 CDTi Advanced will offset losses from the drop in CDTi Advanced's 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 |
| CDTi Advanced vs. Yuexiu Transport Infrastructure | CDTi Advanced vs. Sun Country Airlines | CDTi Advanced vs. Getty Images Holdings | CDTi Advanced vs. TFI International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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