Correlation Between Barrick Gold and Cineverse Corp

Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Cineverse Corp 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 Cineverse Corp 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 Cineverse Corp, you can compare the effects of market volatilities on Barrick Gold and Cineverse Corp 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 Cineverse Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Cineverse Corp.

Diversification Opportunities for Barrick Gold and Cineverse Corp

0.57

Correlation Coefficient

Barrick Gold  Cineverse Corp

Very weak diversification

The 3 months correlation between Barrick and Cineverse is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Cineverse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cineverse 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 Cineverse Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cineverse Corp has no effect on the direction of Barrick Gold i.e., Barrick Gold and Cineverse Corp go up and down completely randomly.

Pair Corralation between Barrick Gold and Cineverse Corp

Given the investment horizon of 90 days Barrick Gold Corp is expected to generate 0.41 times more return on investment than Cineverse Corp. However, Barrick Gold Corp is 2.43 times less risky than Cineverse Corp. It trades about 0.03 of its potential returns per unit of risk. Cineverse Corp is currently generating about -0.01 per unit of risk. If you would invest  1,727  in Barrick Gold Corp on December 4, 2024 and sell it today you would earn a total of  42.00  from holding Barrick Gold Corp or generate 2.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Barrick Gold Corp  vs.  Cineverse Corp

Barrick Gold Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Barrick Gold Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, Barrick Gold is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Cineverse Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cineverse Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cineverse Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Barrick Gold and Cineverse Corp

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

The idea behind Barrick Gold Corp and Cineverse Corp 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.