Correlation Between Barrick Gold and EXXON
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By analyzing existing cross correlation between Barrick Gold Corp and EXXON MOBIL P, you can compare the effects of market volatilities on Barrick Gold and EXXON 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 EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and EXXON.
Diversification Opportunities for Barrick Gold and EXXON
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barrick and EXXON is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P 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 EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of Barrick Gold i.e., Barrick Gold and EXXON go up and down completely randomly.
Pair Corralation between Barrick Gold and EXXON
Given the investment horizon of 90 days Barrick Gold is expected to generate 226.38 times less return on investment than EXXON. But when comparing it to its historical volatility, Barrick Gold Corp is 41.15 times less risky than EXXON. It trades about 0.01 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,141 in EXXON MOBIL P on September 12, 2024 and sell it today you would lose (28.00) from holding EXXON MOBIL P or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.13% |
| Values | Daily Returns |
Barrick Gold Corp vs. EXXON MOBIL P
Performance |
| Timeline |
| Barrick Gold Corp |
| EXXON MOBIL P |
Barrick Gold and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and EXXON
The main advantage of trading using opposite Barrick Gold and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, EXXON 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 EXXON will offset losses from the drop in EXXON'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 |
| EXXON vs. Barrick Gold Corp | EXXON vs. Perseus Mining Limited | EXXON vs. Summit Materials | EXXON vs. Nok Airlines Public |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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