Correlation Between Barrick Gold and 12572QAK1
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By analyzing existing cross correlation between Barrick Gold Corp and CME 265 15 MAR 32, you can compare the effects of market volatilities on Barrick Gold and 12572QAK1 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 12572QAK1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and 12572QAK1.
Diversification Opportunities for Barrick Gold and 12572QAK1
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barrick and 12572QAK1 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and CME 265 15 MAR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CME 265 15 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 12572QAK1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CME 265 15 has no effect on the direction of Barrick Gold i.e., Barrick Gold and 12572QAK1 go up and down completely randomly.
Pair Corralation between Barrick Gold and 12572QAK1
Given the investment horizon of 90 days Barrick Gold Corp is expected to generate 1.28 times more return on investment than 12572QAK1. However, Barrick Gold is 1.28 times more volatile than CME 265 15 MAR 32. It trades about -0.02 of its potential returns per unit of risk. CME 265 15 MAR 32 is currently generating about -0.06 per unit of risk. If you would invest 1,740 in Barrick Gold Corp on September 12, 2024 and sell it today you would lose (20.00) from holding Barrick Gold Corp or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. CME 265 15 MAR 32
Performance |
| Timeline |
| Barrick Gold Corp |
| CME 265 15 |
Barrick Gold and 12572QAK1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and 12572QAK1
The main advantage of trading using opposite Barrick Gold and 12572QAK1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, 12572QAK1 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 12572QAK1 will offset losses from the drop in 12572QAK1'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 |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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