Correlation Between Barrick Gold and Polyus PAO

Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Polyus PAO 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 Polyus PAO into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Barrick Gold Corp and Polyus PAO ADR, you can compare the effects of market volatilities on Barrick Gold and Polyus PAO 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 Polyus PAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Polyus PAO.

Diversification Opportunities for Barrick Gold and Polyus PAO

0.0

Correlation Coefficient

Barrick Gold  Polyus PAO

Pay attention - limited upside

The 3 months correlation between Barrick and Polyus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Polyus PAO ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyus PAO ADR 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 Corp are associated (or correlated) with Polyus PAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyus PAO ADR has no effect on the direction of Barrick Gold i.e., Barrick Gold and Polyus PAO go up and down completely randomly.

Pair Corralation between Barrick Gold and Polyus PAO

If you would invest  1,552  in Barrick Gold Corp on January 26, 2024 and sell it today you would earn a total of  100.00  from holding Barrick Gold Corp or generate 6.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Barrick Gold Corp  vs.  Polyus PAO ADR

Barrick Gold Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Barrick Gold Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, Barrick Gold may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Polyus PAO ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polyus PAO ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Polyus PAO is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Barrick Gold and Polyus PAO

The main advantage of trading using opposite Barrick Gold and Polyus PAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Polyus PAO 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 Polyus PAO will offset losses from the drop in Polyus PAO's long position.

The idea behind Barrick Gold Corp and Polyus PAO ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.