Correlation Between Barrick Gold and TinOne Resources
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and TinOne Resources 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 TinOne Resources 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 TinOne Resources, you can compare the effects of market volatilities on Barrick Gold and TinOne Resources 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 TinOne Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and TinOne Resources.
Diversification Opportunities for Barrick Gold and TinOne Resources
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and TinOne is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and TinOne Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TinOne Resources 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 TinOne Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TinOne Resources has no effect on the direction of Barrick Gold i.e., Barrick Gold and TinOne Resources go up and down completely randomly.
Pair Corralation between Barrick Gold and TinOne Resources
Given the investment horizon of 90 days Barrick Gold is expected to generate 4.48 times less return on investment than TinOne Resources. But when comparing it to its historical volatility, Barrick Gold Corp is 5.94 times less risky than TinOne Resources. It trades about 0.07 of its potential returns per unit of risk. TinOne Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 15.00 in TinOne Resources on August 27, 2024 and sell it today you would earn a total of 4.00 from holding TinOne Resources or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. TinOne Resources
Performance |
| Timeline |
| Barrick Gold Corp |
| TinOne Resources |
Barrick Gold and TinOne Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and TinOne Resources
The main advantage of trading using opposite Barrick Gold and TinOne Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, TinOne Resources 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 TinOne Resources will offset losses from the drop in TinOne Resources' 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 |
| TinOne Resources vs. Aurion Resources | TinOne Resources vs. Liberty Gold Corp | TinOne Resources vs. Orezone Gold Corp | TinOne Resources vs. Radisson Mining Resources |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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