Correlation Between Barrick Gold and UTime
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and UTime 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 UTime 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 UTime Limited, you can compare the effects of market volatilities on Barrick Gold and UTime 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 UTime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and UTime.
Diversification Opportunities for Barrick Gold and UTime
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barrick and UTime is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and UTime Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTime Limited 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 UTime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTime Limited has no effect on the direction of Barrick Gold i.e., Barrick Gold and UTime go up and down completely randomly.
Pair Corralation between Barrick Gold and UTime
Given the investment horizon of 90 days Barrick Gold is expected to generate 3.16 times less return on investment than UTime. But when comparing it to its historical volatility, Barrick Gold Corp is 4.99 times less risky than UTime. It trades about 0.02 of its potential returns per unit of risk. UTime Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 610.00 in UTime Limited on September 3, 2024 and sell it today you would lose (574.00) from holding UTime Limited or give up 94.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. UTime Limited
Performance |
| Timeline |
| Barrick Gold Corp |
| UTime Limited |
Barrick Gold and UTime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and UTime
The main advantage of trading using opposite Barrick Gold and UTime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, UTime 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 UTime will offset losses from the drop in UTime's long position.| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Gold Fields Ltd | Barrick Gold vs. Franco Nevada | Barrick Gold vs. Sandstorm Gold Ltd |
| UTime vs. Albertsons Companies | UTime vs. CECO Environmental Corp | UTime vs. Papaya Growth Opportunity | UTime vs. BBB Foods |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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