Correlation Between Barrick Gold and ZEEKR Intelligent
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and ZEEKR Intelligent 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 ZEEKR Intelligent 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 ZEEKR Intelligent Technology, you can compare the effects of market volatilities on Barrick Gold and ZEEKR Intelligent 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 ZEEKR Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and ZEEKR Intelligent.
Diversification Opportunities for Barrick Gold and ZEEKR Intelligent
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barrick and ZEEKR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent 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 ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of Barrick Gold i.e., Barrick Gold and ZEEKR Intelligent go up and down completely randomly.
Pair Corralation between Barrick Gold and ZEEKR Intelligent
Given the investment horizon of 90 days Barrick Gold Corp is expected to under-perform the ZEEKR Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, Barrick Gold Corp is 3.39 times less risky than ZEEKR Intelligent. The stock trades about 0.0 of its potential returns per unit of risk. The ZEEKR Intelligent Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,100 in ZEEKR Intelligent Technology on August 26, 2024 and sell it today you would earn a total of 140.00 from holding ZEEKR Intelligent Technology or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 35.28% |
| Values | Daily Returns |
Barrick Gold Corp vs. ZEEKR Intelligent Technology
Performance |
| Timeline |
| Barrick Gold Corp |
| ZEEKR Intelligent |
Barrick Gold and ZEEKR Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and ZEEKR Intelligent
The main advantage of trading using opposite Barrick Gold and ZEEKR Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, ZEEKR Intelligent 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 ZEEKR Intelligent will offset losses from the drop in ZEEKR Intelligent'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 |
| ZEEKR Intelligent vs. Barrick Gold Corp | ZEEKR Intelligent vs. Akanda Corp | ZEEKR Intelligent vs. Teleflex Incorporated | ZEEKR Intelligent vs. Neogen |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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