Correlation Between Barrick Mining and Angel Oak

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Can any of the company-specific risk be diversified away by investing in both Barrick Mining and Angel Oak 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 Mining and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrick Mining and Angel Oak Mortgage, you can compare the effects of market volatilities on Barrick Mining and Angel Oak 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 Mining with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Mining and Angel Oak.

Diversification Opportunities for Barrick Mining and Angel Oak

-0.68
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Barrick and Angel is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Mining and Angel Oak Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Mortgage and Barrick Mining 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 Mining are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Mortgage has no effect on the direction of Barrick Mining i.e., Barrick Mining and Angel Oak go up and down completely randomly.

Pair Corralation between Barrick Mining and Angel Oak

Taking into account the 90-day investment horizon Barrick Mining is expected to generate 2.35 times more return on investment than Angel Oak. However, Barrick Mining is 2.35 times more volatile than Angel Oak Mortgage. It trades about 0.2 of its potential returns per unit of risk. Angel Oak Mortgage is currently generating about -0.09 per unit of risk. If you would invest  2,829  in Barrick Mining on September 5, 2025 and sell it today you would earn a total of  1,221  from holding Barrick Mining or generate 43.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Barrick Mining  vs.  Angel Oak Mortgage

 Performance 
       Timeline  
Barrick Mining 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Barrick Mining are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, Barrick Mining sustained solid returns over the last few months and may actually be approaching a breakup point.
Angel Oak Mortgage 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Angel Oak Mortgage has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's primary indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Barrick Mining and Angel Oak Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Barrick Mining and Angel Oak

The main advantage of trading using opposite Barrick Mining and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Mining position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.
The idea behind Barrick Mining and Angel Oak Mortgage 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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