Correlation Between Barrick Mining and Movie Studio

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

Diversification Opportunities for Barrick Mining and Movie Studio

0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between Barrick and Movie is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Mining and Movie Studio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Studio 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 Movie Studio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Studio has no effect on the direction of Barrick Mining i.e., Barrick Mining and Movie Studio go up and down completely randomly.

Pair Corralation between Barrick Mining and Movie Studio

Taking into account the 90-day investment horizon Barrick Mining is expected to generate 0.27 times more return on investment than Movie Studio. However, Barrick Mining is 3.68 times less risky than Movie Studio. It trades about 0.2 of its potential returns per unit of risk. Movie Studio is currently generating about 0.05 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 Together 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Barrick Mining  vs.  Movie Studio

 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.
Movie Studio 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Movie Studio are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Movie Studio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Barrick Mining and Movie Studio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Barrick Mining and Movie Studio

The main advantage of trading using opposite Barrick Mining and Movie Studio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barrick Mining position performs unexpectedly, Movie Studio 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 Movie Studio will offset losses from the drop in Movie Studio's long position.
The idea behind Barrick Mining and Movie Studio 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.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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