Correlation Between Barrick Gold and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Victorias Secret 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 Victorias Secret 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 Victorias Secret Co, you can compare the effects of market volatilities on Barrick Gold and Victorias Secret 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 Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Victorias Secret.
Diversification Opportunities for Barrick Gold and Victorias Secret
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and Victorias is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret 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 Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of Barrick Gold i.e., Barrick Gold and Victorias Secret go up and down completely randomly.
Pair Corralation between Barrick Gold and Victorias Secret
Given the investment horizon of 90 days Barrick Gold is expected to generate 4.97 times less return on investment than Victorias Secret. But when comparing it to its historical volatility, Barrick Gold Corp is 1.9 times less risky than Victorias Secret. It trades about 0.02 of its potential returns per unit of risk. Victorias Secret Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,695 in Victorias Secret Co on August 26, 2024 and sell it today you would earn a total of 1,014 from holding Victorias Secret Co or generate 37.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Victorias Secret Co
Performance |
| Timeline |
| Barrick Gold Corp |
| Victorias Secret |
Barrick Gold and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Victorias Secret
The main advantage of trading using opposite Barrick Gold and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret'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 |
| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |