Correlation Between Barrick Gold and Grayscale Decentralized
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Grayscale Decentralized 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 Grayscale Decentralized 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 Grayscale Decentralized Finance, you can compare the effects of market volatilities on Barrick Gold and Grayscale Decentralized 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 Grayscale Decentralized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Grayscale Decentralized.
Diversification Opportunities for Barrick Gold and Grayscale Decentralized
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barrick and Grayscale is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Grayscale Decentralized Financ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Decentralized 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 Grayscale Decentralized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Decentralized has no effect on the direction of Barrick Gold i.e., Barrick Gold and Grayscale Decentralized go up and down completely randomly.
Pair Corralation between Barrick Gold and Grayscale Decentralized
Given the investment horizon of 90 days Barrick Gold is expected to generate 134.69 times less return on investment than Grayscale Decentralized. But when comparing it to its historical volatility, Barrick Gold Corp is 23.3 times less risky than Grayscale Decentralized. It trades about 0.01 of its potential returns per unit of risk. Grayscale Decentralized Finance is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,700 in Grayscale Decentralized Finance on September 14, 2024 and sell it today you would earn a total of 1,500 from holding Grayscale Decentralized Finance or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Grayscale Decentralized Financ
Performance |
| Timeline |
| Barrick Gold Corp |
| Grayscale Decentralized |
Barrick Gold and Grayscale Decentralized Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Grayscale Decentralized
The main advantage of trading using opposite Barrick Gold and Grayscale Decentralized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Grayscale Decentralized 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 Grayscale Decentralized will offset losses from the drop in Grayscale Decentralized's long position.| Barrick Gold vs. Fortitude Gold Corp | Barrick Gold vs. New Gold | Barrick Gold vs. Galiano Gold | Barrick Gold vs. GoldMining |
| Grayscale Decentralized vs. Harmony Gold Mining | Grayscale Decentralized vs. Chester Mining | Grayscale Decentralized vs. Barrick Gold Corp | Grayscale Decentralized vs. Oatly Group AB |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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