Correlation Between Barrick Gold and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Doubledown Interactive 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 Doubledown Interactive 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 Doubledown Interactive Co, you can compare the effects of market volatilities on Barrick Gold and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Doubledown Interactive.
Diversification Opportunities for Barrick Gold and Doubledown Interactive
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barrick and Doubledown is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Barrick Gold i.e., Barrick Gold and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Barrick Gold and Doubledown Interactive
Given the investment horizon of 90 days Barrick Gold Corp is expected to generate 0.99 times more return on investment than Doubledown Interactive. However, Barrick Gold Corp is 1.01 times less risky than Doubledown Interactive. It trades about 0.22 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about -0.02 per unit of risk. If you would invest 1,659 in Barrick Gold Corp on December 6, 2024 and sell it today you would earn a total of 187.00 from holding Barrick Gold Corp or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Doubledown Interactive Co
Performance |
| Timeline |
| Barrick Gold Corp |
| Doubledown Interactive |
Barrick Gold and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Doubledown Interactive
The main advantage of trading using opposite Barrick Gold and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive'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 |
| Doubledown Interactive vs. Playtika Holding Corp | Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. GDEV 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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