Correlation Between Barrick Gold and TeraGo
Can any of the company-specific risk be diversified away by investing in both Barrick Gold and TeraGo 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 TeraGo 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 TeraGo Inc, you can compare the effects of market volatilities on Barrick Gold and TeraGo 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 TeraGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Gold and TeraGo.
Diversification Opportunities for Barrick Gold and TeraGo
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barrick and TeraGo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and TeraGo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TeraGo Inc 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 TeraGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TeraGo Inc has no effect on the direction of Barrick Gold i.e., Barrick Gold and TeraGo go up and down completely randomly.
Pair Corralation between Barrick Gold and TeraGo
Assuming the 90 days trading horizon Barrick Gold Corp is expected to generate 1.02 times more return on investment than TeraGo. However, Barrick Gold is 1.02 times more volatile than TeraGo Inc. It trades about 0.23 of its potential returns per unit of risk. TeraGo Inc is currently generating about -0.1 per unit of risk. If you would invest 3,604 in Barrick Gold Corp on August 28, 2025 and sell it today you would earn a total of 1,914 from holding Barrick Gold Corp or generate 53.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Gold Corp vs. TeraGo Inc
Performance |
| Timeline |
| Barrick Gold Corp |
| TeraGo Inc |
Barrick Gold and TeraGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Gold and TeraGo
The main advantage of trading using opposite Barrick Gold and TeraGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Gold position performs unexpectedly, TeraGo 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 TeraGo will offset losses from the drop in TeraGo's long position.| Barrick Gold vs. Kua Investments | Barrick Gold vs. Precious Metals And | Barrick Gold vs. Upstart Investments | Barrick Gold vs. DGL Investments No1 |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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