Correlation Between Barrick Gold and Reitar Logtech
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Reitar Logtech 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 Reitar Logtech 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 Reitar Logtech Holdings, you can compare the effects of market volatilities on Barrick Gold and Reitar Logtech 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 Reitar Logtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Reitar Logtech.
Diversification Opportunities for Barrick Gold and Reitar Logtech
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barrick and Reitar is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Reitar Logtech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitar Logtech Holdings 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 Reitar Logtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitar Logtech Holdings has no effect on the direction of Barrick Gold i.e., Barrick Gold and Reitar Logtech go up and down completely randomly.
Pair Corralation between Barrick Gold and Reitar Logtech
Given the investment horizon of 90 days Barrick Gold Corp is expected to generate 0.16 times more return on investment than Reitar Logtech. However, Barrick Gold Corp is 6.23 times less risky than Reitar Logtech. It trades about -0.21 of its potential returns per unit of risk. Reitar Logtech Holdings is currently generating about -0.09 per unit of risk. If you would invest 1,998 in Barrick Gold Corp on August 27, 2024 and sell it today you would lose (176.00) from holding Barrick Gold Corp or give up 8.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Reitar Logtech Holdings
Performance |
| Timeline |
| Barrick Gold Corp |
| Reitar Logtech Holdings |
Barrick Gold and Reitar Logtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Reitar Logtech
The main advantage of trading using opposite Barrick Gold and Reitar Logtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Reitar Logtech 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 Reitar Logtech will offset losses from the drop in Reitar Logtech'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 |
| Reitar Logtech vs. ACG Metals Limited | Reitar Logtech vs. Udemy Inc | Reitar Logtech vs. Acco Brands | Reitar Logtech vs. Barrick Gold Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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