Correlation Between Proficient Auto and Barrick Gold

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

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

Diversification Opportunities for Proficient Auto and Barrick Gold

0.5

Correlation Coefficient

Proficient Auto  Barrick Gold

Very weak diversification

The 3 months correlation between Proficient and Barrick is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, 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 Proficient Auto 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 Proficient Auto Logistics, 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 Proficient Auto i.e., Proficient Auto and Barrick Gold go up and down completely randomly.

Pair Corralation between Proficient Auto and Barrick Gold

Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the Barrick Gold. In addition to that, Proficient Auto is 2.54 times more volatile than Barrick Gold Corp. It trades about -0.17 of its total potential returns per unit of risk. Barrick Gold Corp is currently generating about -0.12 per unit of volatility. If you would invest  1,960  in Barrick Gold Corp on September 10, 2024 and sell it today you would lose (283.00) from holding Barrick Gold Corp or give up 14.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Proficient Auto Logistics,  vs.  Barrick Gold Corp

Proficient Auto Logi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Barrick Gold Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barrick Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Proficient Auto and Barrick Gold

The main advantage of trading using opposite Proficient Auto and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto 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 Proficient Auto Logistics, 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.