Correlation Between Sydbank AS and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Sydbank AS 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 Sydbank AS and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sydbank AS and Barrick Gold, you can compare the effects of market volatilities on Sydbank AS 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 Sydbank AS with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sydbank AS and Barrick Gold.
Diversification Opportunities for Sydbank AS and Barrick Gold
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sydbank and Barrick is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Barrick Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold and Sydbank AS 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 Sydbank AS 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 has no effect on the direction of Sydbank AS i.e., Sydbank AS and Barrick Gold go up and down completely randomly.
Pair Corralation between Sydbank AS and Barrick Gold
Assuming the 90 days horizon Sydbank AS is expected to generate 3.11 times more return on investment than Barrick Gold. However, Sydbank AS is 3.11 times more volatile than Barrick Gold. It trades about 0.07 of its potential returns per unit of risk. Barrick Gold is currently generating about 0.02 per unit of risk. If you would invest 1,167 in Sydbank AS on November 9, 2024 and sell it today you would earn a total of 3,908 from holding Sydbank AS or generate 334.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sydbank AS vs. Barrick Gold
Performance |
| Timeline |
| Sydbank AS |
| Barrick Gold |
Sydbank AS and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sydbank AS and Barrick Gold
The main advantage of trading using opposite Sydbank AS and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank AS 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.| Sydbank AS vs. Verizon Communications | Sydbank AS vs. X FAB Silicon Foundries | Sydbank AS vs. SEKISUI CHEMICAL | Sydbank AS vs. Mitsui Chemicals |
| Barrick Gold vs. X FAB Silicon Foundries | Barrick Gold vs. Silicon Motion Technology | Barrick Gold vs. CANON MARKETING JP | Barrick Gold vs. Tradegate AG Wertpapierhandelsbank |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |