Correlation Between Barrick Gold and Aloro Mining
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Aloro Mining 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 Aloro Mining 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 Aloro Mining Corp, you can compare the effects of market volatilities on Barrick Gold and Aloro Mining 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 Aloro Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Aloro Mining.
Diversification Opportunities for Barrick Gold and Aloro Mining
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barrick and Aloro is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Aloro Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aloro Mining Corp 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 Aloro Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aloro Mining Corp has no effect on the direction of Barrick Gold i.e., Barrick Gold and Aloro Mining go up and down completely randomly.
Pair Corralation between Barrick Gold and Aloro Mining
Given the investment horizon of 90 days Barrick Gold is expected to generate 82.73 times less return on investment than Aloro Mining. But when comparing it to its historical volatility, Barrick Gold Corp is 23.48 times less risky than Aloro Mining. It trades about 0.01 of its potential returns per unit of risk. Aloro Mining Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.51 in Aloro Mining Corp on September 14, 2024 and sell it today you would lose (2.08) from holding Aloro Mining Corp or give up 82.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Aloro Mining Corp
Performance |
| Timeline |
| Barrick Gold Corp |
| Aloro Mining Corp |
Barrick Gold and Aloro Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Aloro Mining
The main advantage of trading using opposite Barrick Gold and Aloro Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Aloro Mining 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 Aloro Mining will offset losses from the drop in Aloro Mining's long position.| Barrick Gold vs. Fortitude Gold Corp | Barrick Gold vs. New Gold | Barrick Gold vs. Galiano Gold | Barrick Gold vs. GoldMining |
| Aloro Mining vs. Antioquia Gold | Aloro Mining vs. Antilles Gold Limited | Aloro Mining vs. Asante Gold | Aloro Mining vs. Bluestone 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |