Correlation Between Smurfit WestRock and Barrick Mining
Can any of the company-specific risk be diversified away by investing in both Smurfit WestRock and Barrick Mining 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 Smurfit WestRock and Barrick Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smurfit WestRock plc and Barrick Mining, you can compare the effects of market volatilities on Smurfit WestRock and Barrick Mining 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 Smurfit WestRock with a short position of Barrick Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smurfit WestRock and Barrick Mining.
Diversification Opportunities for Smurfit WestRock and Barrick Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Smurfit and Barrick is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Smurfit WestRock plc and Barrick Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Mining and Smurfit WestRock 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 Smurfit WestRock plc are associated (or correlated) with Barrick Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Mining has no effect on the direction of Smurfit WestRock i.e., Smurfit WestRock and Barrick Mining go up and down completely randomly.
Pair Corralation between Smurfit WestRock and Barrick Mining
Allowing for the 90-day total investment horizon Smurfit WestRock is expected to generate 4.41 times less return on investment than Barrick Mining. In addition to that, Smurfit WestRock is 1.22 times more volatile than Barrick Mining. It trades about 0.07 of its total potential returns per unit of risk. Barrick Mining is currently generating about 0.35 per unit of volatility. If you would invest 1,993 in Barrick Mining on June 10, 2025 and sell it today you would earn a total of 906.00 from holding Barrick Mining or generate 45.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smurfit WestRock plc vs. Barrick Mining
Performance |
| Timeline |
| Smurfit WestRock plc |
| Barrick Mining |
Smurfit WestRock and Barrick Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smurfit WestRock and Barrick Mining
The main advantage of trading using opposite Smurfit WestRock and Barrick Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smurfit WestRock position performs unexpectedly, Barrick Mining 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 Mining will offset losses from the drop in Barrick Mining's long position.| Smurfit WestRock vs. Alexandria Real Estate | Smurfit WestRock vs. HomesToLife | Smurfit WestRock vs. Integrated Media Technology | Smurfit WestRock vs. Newton Golf |
| Barrick Mining vs. AngloGold Ashanti plc | Barrick Mining vs. Celanese | Barrick Mining vs. Dakota Gold Corp | Barrick Mining vs. Ivanhoe Electric |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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