Correlation Between Barrick Gold and Accretion Acquisition

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

Diversification Opportunities for Barrick Gold and Accretion Acquisition

0.0

Correlation Coefficient

Barrick Gold  Accretion Acquisition

Pay attention - limited upside

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

Pair Corralation between Barrick Gold and Accretion Acquisition

If you would invest  1,537  in Barrick Gold Corp on December 29, 2024 and sell it today you would earn a total of  419.00  from holding Barrick Gold Corp or generate 27.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Barrick Gold Corp  vs.  Accretion Acquisition Corp

Barrick Gold Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Barrick Gold Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, Barrick Gold exhibited solid returns over the last few months and may actually be approaching a breakup point.

Accretion Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Accretion Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Accretion Acquisition is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Barrick Gold and Accretion Acquisition

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

The idea behind Barrick Gold Corp and Accretion Acquisition 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.