Correlation Between Barrick Gold and Orea Mining
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Orea Mining 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 Orea Mining 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 Orea Mining Corp, you can compare the effects of market volatilities on Barrick Gold and Orea Mining 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 Orea Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Orea Mining.
Diversification Opportunities for Barrick Gold and Orea Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and Orea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Orea Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orea Mining Corp 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 Orea Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orea Mining Corp has no effect on the direction of Barrick Gold i.e., Barrick Gold and Orea Mining go up and down completely randomly.
Pair Corralation between Barrick Gold and Orea Mining
If you would invest 1,441 in Barrick Gold Corp on December 29, 2023 and sell it today you would earn a total of 180.00 from holding Barrick Gold Corp or generate 12.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Barrick Gold Corp vs. Orea Mining Corp
Performance |
Timeline |
Barrick Gold Corp |
Orea Mining Corp |
Barrick Gold and Orea Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barrick Gold and Orea Mining
The main advantage of trading using opposite Barrick Gold and Orea Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Orea Mining 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 Orea Mining will offset losses from the drop in Orea Mining's long position.Barrick Gold vs. Chemours Co | Barrick Gold vs. CF Industries Holdings | Barrick Gold vs. Dupont De Nemours | Barrick Gold vs. FutureFuel Corp |
Orea Mining vs. Newmont Goldcorp Corp | Orea Mining vs. Agnico Eagle Mines | Orea Mining vs. Barrick Gold Corp | Orea Mining vs. Wheaton Precious Metals |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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