Correlation Between 629377CE0 and Barrick Gold

Can any of the company-specific risk be diversified away by investing in both 629377CE0 and Barrick Gold 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 629377CE0 and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NRG Energy 575 and Barrick Gold Corp, you can compare the effects of market volatilities on 629377CE0 and Barrick Gold 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 629377CE0 with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of 629377CE0 and Barrick Gold.

Diversification Opportunities for 629377CE0 and Barrick Gold

-0.32

Correlation Coefficient

629377CE0  Barrick Gold

Very good diversification

The 3 months correlation between 629377CE0 and Barrick is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding NRG Energy 575 and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp and 629377CE0 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 NRG Energy 575 are associated (or correlated) with Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of 629377CE0 i.e., 629377CE0 and Barrick Gold go up and down completely randomly.

Pair Corralation between 629377CE0 and Barrick Gold

Assuming the 90 days trading horizon NRG Energy 575 is expected to under-perform the Barrick Gold. But the bond apears to be less risky and, when comparing its historical volatility, NRG Energy 575 is 2.23 times less risky than Barrick Gold. The bond trades about -0.12 of its potential returns per unit of risk. The Barrick Gold Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,565  in Barrick Gold Corp on December 25, 2024 and sell it today you would earn a total of  324.00  from holding Barrick Gold Corp or generate 20.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

NRG Energy 575  vs.  Barrick Gold Corp

NRG Energy 575

Risk-Adjusted Performance

Very Weak

Over the last 90 days NRG Energy 575 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 629377CE0 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Barrick Gold Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Barrick Gold Corp are ranked lower than 14 (%) 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.

Pair Trading with 629377CE0 and Barrick Gold

The main advantage of trading using opposite 629377CE0 and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 629377CE0 position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.

The idea behind NRG Energy 575 and Barrick Gold 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .