Correlation Between Magna Mining and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both Magna Mining and Barrick Gold 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 Magna Mining and Barrick Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magna Mining and Barrick Gold Corp, you can compare the effects of market volatilities on Magna Mining and Barrick Gold 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 Magna Mining with a short position of Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magna Mining and Barrick Gold.
Diversification Opportunities for Magna Mining and Barrick Gold
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Magna and Barrick is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Magna Mining and Barrick Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold Corp and Magna 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 Magna Mining are associated (or correlated) with Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold Corp has no effect on the direction of Magna Mining i.e., Magna Mining and Barrick Gold go up and down completely randomly.
Pair Corralation between Magna Mining and Barrick Gold
Assuming the 90 days trading horizon Magna Mining is expected to generate 5.94 times less return on investment than Barrick Gold. In addition to that, Magna Mining is 1.25 times more volatile than Barrick Gold Corp. It trades about 0.02 of its total potential returns per unit of risk. Barrick Gold Corp is currently generating about 0.17 per unit of volatility. If you would invest 4,079 in Barrick Gold Corp on September 10, 2025 and sell it today you would earn a total of 1,470 from holding Barrick Gold Corp or generate 36.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magna Mining vs. Barrick Gold Corp
Performance |
| Timeline |
| Magna Mining |
| Barrick Gold Corp |
Magna Mining and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magna Mining and Barrick Gold
The main advantage of trading using opposite Magna Mining and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magna Mining position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's long position.| Magna Mining vs. Titan Mining Corp | Magna Mining vs. NorthIsle Copper and | Magna Mining vs. Entree Resources | Magna Mining vs. Western Copper and |
| Barrick Gold vs. Wheaton Precious Metals | Barrick Gold vs. Kinross Gold Corp | Barrick Gold vs. Agnico Eagle Mines | Barrick Gold vs. Franco Nevada |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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