Correlation Between Blue Moon and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Blue Moon 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 Blue Moon and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Moon Metals and Barrick Gold Corp, you can compare the effects of market volatilities on Blue Moon 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 Blue Moon with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Moon and Barrick Gold.
Diversification Opportunities for Blue Moon and Barrick Gold
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Barrick is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Blue Moon Metals 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 Blue Moon 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 Blue Moon Metals 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 Blue Moon i.e., Blue Moon and Barrick Gold go up and down completely randomly.
Pair Corralation between Blue Moon and Barrick Gold
Assuming the 90 days horizon Blue Moon Metals is expected to under-perform the Barrick Gold. In addition to that, Blue Moon is 1.78 times more volatile than Barrick Gold Corp. It trades about -0.04 of its total potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.08 per unit of volatility. If you would invest 1,679 in Barrick Gold Corp on September 14, 2024 and sell it today you would earn a total of 49.00 from holding Barrick Gold Corp or generate 2.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Blue Moon Metals vs. Barrick Gold Corp
Performance |
Timeline |
Blue Moon Metals |
Barrick Gold Corp |
Blue Moon and Barrick Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blue Moon and Barrick Gold
The main advantage of trading using opposite Blue Moon and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Moon 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.Blue Moon vs. Qubec Nickel Corp | Blue Moon vs. IGO Limited | Blue Moon vs. Focus Graphite | Blue Moon vs. Mineral Res |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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