Correlation Between Barrick Gold and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and SSR Mining 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 SSR Mining 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 SSR Mining, you can compare the effects of market volatilities on Barrick Gold and SSR Mining 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and SSR Mining.
Diversification Opportunities for Barrick Gold and SSR Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barrick and SSR is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Barrick Gold i.e., Barrick Gold and SSR Mining go up and down completely randomly.
Pair Corralation between Barrick Gold and SSR Mining
Given the investment horizon of 90 days Barrick Gold is expected to generate 2.79 times less return on investment than SSR Mining. But when comparing it to its historical volatility, Barrick Gold Corp is 2.44 times less risky than SSR Mining. It trades about 0.26 of its potential returns per unit of risk. SSR Mining is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 749.00 in SSR Mining on November 9, 2024 and sell it today you would earn a total of 163.00 from holding SSR Mining or generate 21.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. SSR Mining
Performance |
| Timeline |
| Barrick Gold Corp |
| SSR Mining |
Barrick Gold and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and SSR Mining
The main advantage of trading using opposite Barrick Gold and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining'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 |
| SSR Mining vs. Centerra Gold | SSR Mining vs. Gold Fields Ltd | SSR Mining vs. Eldorado Gold Corp | SSR Mining vs. Osisko Gold Ro |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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