Correlation Between Barrick Gold and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Yuexiu Transport 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Barrick Gold and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Yuexiu Transport.
Diversification Opportunities for Barrick Gold and Yuexiu Transport
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and Yuexiu is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Barrick Gold i.e., Barrick Gold and Yuexiu Transport go up and down completely randomly.
Pair Corralation between Barrick Gold and Yuexiu Transport
Given the investment horizon of 90 days Barrick Gold is expected to generate 6.23 times less return on investment than Yuexiu Transport. But when comparing it to its historical volatility, Barrick Gold Corp is 1.42 times less risky than Yuexiu Transport. It trades about 0.02 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Yuexiu Transport Infrastructure on August 30, 2024 and sell it today you would earn a total of 38.00 from holding Yuexiu Transport Infrastructure or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| Barrick Gold Corp |
| Yuexiu Transport Inf |
Barrick Gold and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Yuexiu Transport
The main advantage of trading using opposite Barrick Gold and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport'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 |
| Yuexiu Transport vs. Verra Mobility Corp | Yuexiu Transport vs. HUMANA INC | Yuexiu Transport vs. Aquagold International | Yuexiu Transport vs. Barloworld Ltd ADR |
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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