Correlation Between Barrick Gold and GENERAL
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By analyzing existing cross correlation between Barrick Gold Corp and GENERAL ELEC CAP, you can compare the effects of market volatilities on Barrick Gold and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and GENERAL.
Diversification Opportunities for Barrick Gold and GENERAL
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barrick and GENERAL is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Barrick Gold i.e., Barrick Gold and GENERAL go up and down completely randomly.
Pair Corralation between Barrick Gold and GENERAL
Given the investment horizon of 90 days Barrick Gold Corp is expected to under-perform the GENERAL. But the stock apears to be less risky and, when comparing its historical volatility, Barrick Gold Corp is 1.21 times less risky than GENERAL. The stock trades about -0.2 of its potential returns per unit of risk. The GENERAL ELEC CAP is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 9,209 in GENERAL ELEC CAP on September 2, 2024 and sell it today you would lose (334.00) from holding GENERAL ELEC CAP or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Barrick Gold Corp vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Barrick Gold Corp |
| GENERAL ELEC CAP |
Barrick Gold and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and GENERAL
The main advantage of trading using opposite Barrick Gold and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL'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 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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