Correlation Between Barrick Gold and SunOpta
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and SunOpta 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 SunOpta 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 SunOpta, you can compare the effects of market volatilities on Barrick Gold and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and SunOpta.
Diversification Opportunities for Barrick Gold and SunOpta
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and SunOpta is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Barrick Gold i.e., Barrick Gold and SunOpta go up and down completely randomly.
Pair Corralation between Barrick Gold and SunOpta
Given the investment horizon of 90 days Barrick Gold is expected to generate 1.81 times less return on investment than SunOpta. But when comparing it to its historical volatility, Barrick Gold Corp is 1.71 times less risky than SunOpta. It trades about 0.01 of its potential returns per unit of risk. SunOpta is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 820.00 in SunOpta on September 12, 2024 and sell it today you would lose (34.50) from holding SunOpta or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. SunOpta
Performance |
| Timeline |
| Barrick Gold Corp |
| SunOpta |
Barrick Gold and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and SunOpta
The main advantage of trading using opposite Barrick Gold and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta'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 |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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