Correlation Between Hudson Technologies and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Hudson Technologies and Barrick Gold 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 Hudson Technologies and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Technologies and Barrick Gold Corp, you can compare the effects of market volatilities on Hudson Technologies and Barrick Gold 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 Hudson Technologies with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Technologies and Barrick Gold.
Diversification Opportunities for Hudson Technologies and Barrick Gold
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hudson and Barrick is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp and Hudson Technologies 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 Hudson Technologies are associated (or correlated) with Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Hudson Technologies i.e., Hudson Technologies and Barrick Gold go up and down completely randomly.
Pair Corralation between Hudson Technologies and Barrick Gold
Given the investment horizon of 90 days Hudson Technologies is expected to under-perform the Barrick Gold. In addition to that, Hudson Technologies is 1.38 times more volatile than Barrick Gold Corp. It trades about -0.09 of its total potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.02 per unit of volatility. If you would invest 1,650 in Barrick Gold Corp on September 3, 2024 and sell it today you would earn a total of 82.00 from holding Barrick Gold Corp or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Technologies vs. Barrick Gold Corp
Performance |
| Timeline |
| Hudson Technologies |
| Barrick Gold Corp |
Hudson Technologies and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Technologies and Barrick Gold
The main advantage of trading using opposite Hudson Technologies and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Technologies position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Gold Fields Ltd | Barrick Gold vs. Franco Nevada | Barrick Gold vs. Sandstorm Gold Ltd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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