Correlation Between Barrick Gold and Hafnia
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Hafnia 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 Hafnia 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 Hafnia Limited, you can compare the effects of market volatilities on Barrick Gold and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Hafnia.
Diversification Opportunities for Barrick Gold and Hafnia
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Barrick and Hafnia is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Barrick Gold i.e., Barrick Gold and Hafnia go up and down completely randomly.
Pair Corralation between Barrick Gold and Hafnia
Given the investment horizon of 90 days Barrick Gold is expected to generate 3.78 times less return on investment than Hafnia. But when comparing it to its historical volatility, Barrick Gold Corp is 1.43 times less risky than Hafnia. It trades about 0.09 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 483.00 in Hafnia Limited on September 13, 2024 and sell it today you would earn a total of 61.00 from holding Hafnia Limited or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Hafnia Limited
Performance |
| Timeline |
| Barrick Gold Corp |
| Hafnia Limited |
Barrick Gold and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Hafnia
The main advantage of trading using opposite Barrick Gold and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia'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 |
| Hafnia vs. Vestis | Hafnia vs. Artisan Partners Asset | Hafnia vs. Global Ship Lease | Hafnia vs. Freedom Bank of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |