Correlation Between Sun Country and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Sun Country 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 Sun Country and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Country Airlines and Barrick Gold Corp, you can compare the effects of market volatilities on Sun Country 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 Sun Country with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Barrick Gold.
Diversification Opportunities for Sun Country and Barrick Gold
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Barrick is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines 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 Sun Country 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 Sun Country Airlines 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 Sun Country i.e., Sun Country and Barrick Gold go up and down completely randomly.
Pair Corralation between Sun Country and Barrick Gold
Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the Barrick Gold. In addition to that, Sun Country is 1.63 times more volatile than Barrick Gold Corp. It trades about -0.01 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 1, 2024 and sell it today you would earn a total of 109.00 from holding Barrick Gold Corp or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Barrick Gold Corp
Performance |
| Timeline |
| Sun Country Airlines |
| Barrick Gold Corp |
Sun Country and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Barrick Gold
The main advantage of trading using opposite Sun Country and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country 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.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA | Sun Country vs. SkyWest |
| Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges |