Correlation Between Barrick Gold and Canfor
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and Canfor 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 Canfor 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 Canfor, you can compare the effects of market volatilities on Barrick Gold and Canfor 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 Canfor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and Canfor.
Diversification Opportunities for Barrick Gold and Canfor
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and Canfor is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and Canfor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canfor 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 Canfor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canfor has no effect on the direction of Barrick Gold i.e., Barrick Gold and Canfor go up and down completely randomly.
Pair Corralation between Barrick Gold and Canfor
Assuming the 90 days trading horizon Barrick Gold Corp is expected to generate 1.8 times more return on investment than Canfor. However, Barrick Gold is 1.8 times more volatile than Canfor. It trades about 0.23 of its potential returns per unit of risk. Canfor is currently generating about -0.14 per unit of risk. If you would invest 3,610 in Barrick Gold Corp on August 22, 2025 and sell it today you would earn a total of 1,698 from holding Barrick Gold Corp or generate 47.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. Canfor
Performance |
| Timeline |
| Barrick Gold Corp |
| Canfor |
Barrick Gold and Canfor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and Canfor
The main advantage of trading using opposite Barrick Gold and Canfor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, Canfor 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 Canfor will offset losses from the drop in Canfor's long position.| Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold Corp | Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Franco Nevada |
| Canfor vs. Northern Dynasty Minerals | Canfor vs. Mineros SA | Canfor vs. Collective Mining | Canfor vs. Interfor Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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