Correlation Between VARNO and Barrick Gold
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By analyzing existing cross correlation between VARNO 8 15 NOV 32 and Barrick Gold Corp, you can compare the effects of market volatilities on VARNO 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 VARNO with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARNO and Barrick Gold.
Diversification Opportunities for VARNO and Barrick Gold
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between VARNO and Barrick is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding VARNO 8 15 NOV 32 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 VARNO 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 VARNO 8 15 NOV 32 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 VARNO i.e., VARNO and Barrick Gold go up and down completely randomly.
Pair Corralation between VARNO and Barrick Gold
Assuming the 90 days trading horizon VARNO is expected to generate 190.94 times less return on investment than Barrick Gold. But when comparing it to its historical volatility, VARNO 8 15 NOV 32 is 8.43 times less risky than Barrick Gold. It trades about 0.01 of its potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,606 in Barrick Gold Corp on November 28, 2024 and sell it today you would earn a total of 203.00 from holding Barrick Gold Corp or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
VARNO 8 15 NOV 32 vs. Barrick Gold Corp
Performance |
| Timeline |
| VARNO 8 15 |
| Barrick Gold Corp |
VARNO and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARNO and Barrick Gold
The main advantage of trading using opposite VARNO and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARNO 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.| VARNO vs. Simpson Manufacturing | VARNO vs. Titan International | VARNO vs. China Clean Energy | VARNO vs. NetSol Technologies |
| 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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