Correlation Between Barrick Gold and Delek Logistics

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Delek Logistics 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 Delek Logistics 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 Delek Logistics Partners, you can compare the effects of market volatilities on Barrick Gold and Delek Logistics 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 Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Delek Logistics.

Diversification Opportunities for Barrick Gold and Delek Logistics

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Barrick and Delek is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Delek Logistics Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Logistics Partners 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 Delek Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Logistics Partners has no effect on the direction of Barrick Gold i.e., Barrick Gold and Delek Logistics go up and down completely randomly.

Pair Corralation between Barrick Gold and Delek Logistics

Given the investment horizon of 90 days Barrick Gold Corp is expected to generate 1.27 times more return on investment than Delek Logistics. However, Barrick Gold is 1.27 times more volatile than Delek Logistics Partners. It trades about 0.02 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about -0.02 per unit of risk. If you would invest  1,692  in Barrick Gold Corp on September 2, 2024 and sell it today you would earn a total of  57.00  from holding Barrick Gold Corp or generate 3.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Barrick Gold Corp  vs.  Delek Logistics Partners

 Performance 
       Timeline  
Barrick Gold Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Barrick Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Delek Logistics Partners 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Delek Logistics Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Delek Logistics is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Barrick Gold and Delek Logistics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Barrick Gold and Delek Logistics

The main advantage of trading using opposite Barrick Gold and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Delek Logistics 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 Delek Logistics will offset losses from the drop in Delek Logistics' long position.
The idea behind Barrick Gold Corp and Delek Logistics Partners pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets