Correlation Between Barrick Gold and Sixty North
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Sixty North 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 Sixty North 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 Sixty North Gold, you can compare the effects of market volatilities on Barrick Gold and Sixty North 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 Sixty North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Sixty North.
Diversification Opportunities for Barrick Gold and Sixty North
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barrick and Sixty is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Sixty North Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty North Gold 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 Sixty North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty North Gold has no effect on the direction of Barrick Gold i.e., Barrick Gold and Sixty North go up and down completely randomly.
Pair Corralation between Barrick Gold and Sixty North
Given the investment horizon of 90 days Barrick Gold is expected to generate 197.82 times less return on investment than Sixty North. But when comparing it to its historical volatility, Barrick Gold Corp is 15.02 times less risky than Sixty North. It trades about 0.01 of its potential returns per unit of risk. Sixty North Gold is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Sixty North Gold on October 13, 2024 and sell it today you would lose (4.00) from holding Sixty North Gold or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.62% |
| Values | Daily Returns |
Barrick Gold Corp vs. Sixty North Gold
Performance |
| Timeline |
| Barrick Gold Corp |
| Sixty North Gold |
Barrick Gold and Sixty North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Sixty North
The main advantage of trading using opposite Barrick Gold and Sixty North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Sixty North 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 Sixty North will offset losses from the drop in Sixty North'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 |
| Sixty North vs. Newmont Goldcorp Corp | Sixty North vs. Zijin Mining Group | Sixty North vs. Agnico Eagle Mines | Sixty North 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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