Correlation Between Barrick Gold and Summa Silver
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Summa Silver 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 Summa Silver 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 Summa Silver Corp, you can compare the effects of market volatilities on Barrick Gold and Summa Silver 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 Summa Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Summa Silver.
Diversification Opportunities for Barrick Gold and Summa Silver
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barrick and Summa is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver 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 Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of Barrick Gold i.e., Barrick Gold and Summa Silver go up and down completely randomly.
Pair Corralation between Barrick Gold and Summa Silver
Given the investment horizon of 90 days Barrick Gold Corp is expected to generate 0.44 times more return on investment than Summa Silver. However, Barrick Gold Corp is 2.3 times less risky than Summa Silver. It trades about -0.07 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.07 per unit of risk. If you would invest 1,946 in Barrick Gold Corp on September 5, 2024 and sell it today you would lose (181.00) from holding Barrick Gold Corp or give up 9.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Barrick Gold Corp vs. Summa Silver Corp
Performance |
Timeline |
Barrick Gold Corp |
Summa Silver Corp |
Barrick Gold and Summa Silver Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barrick Gold and Summa Silver
The main advantage of trading using opposite Barrick Gold and Summa Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Summa Silver 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 Summa Silver will offset losses from the drop in Summa Silver's long position.Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Pan American Silver | Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold |
Summa Silver vs. P2 Gold | Summa Silver vs. Enduro Metals | Summa Silver vs. Kodiak Copper Corp | Summa Silver vs. Mirasol Resources |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |