Correlation Between Barrick Gold and Microsoft
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Microsoft 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 Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrick Gold and Microsoft, you can compare the effects of market volatilities on Barrick Gold and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Microsoft.
Diversification Opportunities for Barrick Gold and Microsoft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and Microsoft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 are associated (or correlated) with Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Barrick Gold i.e., Barrick Gold and Microsoft go up and down completely randomly.
Pair Corralation between Barrick Gold and Microsoft
If you would invest (100.00) in Barrick Gold on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Barrick Gold or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Barrick Gold vs. Microsoft
Performance |
| Timeline |
| Barrick Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Microsoft |
Barrick Gold and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Microsoft
The main advantage of trading using opposite Barrick Gold and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| Barrick Gold vs. Mitsubishi UFJ Lease | Barrick Gold vs. Pyrophyte Acquisition Corp | Barrick Gold vs. Lendlease Global Commercial | Barrick Gold vs. Nomura Holdings ADR |
| Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Cloudflare |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |