Correlation Between Barrick Mining and Expedia
Can any of the company-specific risk be diversified away by investing in both Barrick Mining and Expedia 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 Expedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barrick Mining and Expedia Group, you can compare the effects of market volatilities on Barrick Mining and Expedia 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 Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barrick Mining and Expedia.
Diversification Opportunities for Barrick Mining and Expedia
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barrick and Expedia is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Mining and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group 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 Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Group has no effect on the direction of Barrick Mining i.e., Barrick Mining and Expedia go up and down completely randomly.
Pair Corralation between Barrick Mining and Expedia
Taking into account the 90-day investment horizon Barrick Mining is expected to generate 0.9 times more return on investment than Expedia. However, Barrick Mining is 1.12 times less risky than Expedia. It trades about 0.31 of its potential returns per unit of risk. Expedia Group is currently generating about 0.19 per unit of risk. If you would invest 1,971 in Barrick Mining on June 6, 2025 and sell it today you would earn a total of 736.00 from holding Barrick Mining or generate 37.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barrick Mining vs. Expedia Group
Performance |
| Timeline |
| Barrick Mining |
| Expedia Group |
Barrick Mining and Expedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barrick Mining and Expedia
The main advantage of trading using opposite Barrick Mining and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Mining position performs unexpectedly, Expedia 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 Expedia will offset losses from the drop in Expedia's long position.| Barrick Mining vs. AngloGold Ashanti plc | Barrick Mining vs. Celanese | Barrick Mining vs. Dakota Gold Corp | Barrick Mining vs. Ivanhoe Electric |
| Expedia vs. Booking Holdings | Expedia vs. TripAdvisor | Expedia vs. Airbnb Inc | Expedia vs. Royal Caribbean Cruises |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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