Correlation Between ScanSource and Barrick Mining

Can any of the company-specific risk be diversified away by investing in both ScanSource 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 ScanSource and Barrick Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ScanSource and Barrick Mining, you can compare the effects of market volatilities on ScanSource 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 ScanSource with a short position of Barrick Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ScanSource and Barrick Mining.

Diversification Opportunities for ScanSource and Barrick Mining

-0.62

Correlation Coefficient

ScanSource  Barrick Mining

Excellent diversification

The 3 months correlation between ScanSource and Barrick is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource and Barrick Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Mining and ScanSource 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 ScanSource 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 ScanSource i.e., ScanSource and Barrick Mining go up and down completely randomly.

Pair Corralation between ScanSource and Barrick Mining

Given the investment horizon of 90 days ScanSource is expected to under-perform the Barrick Mining. But the stock apears to be less risky and, when comparing its historical volatility, ScanSource is 1.77 times less risky than Barrick Mining. The stock trades about -0.06 of its potential returns per unit of risk. The Barrick Mining is currently generating about 0.2 of returns per unit of risk over similar time horizon. 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 Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ScanSource  vs.  Barrick Mining

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ScanSource is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Barrick Mining

Risk-Adjusted Performance

Good

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.

Pair Trading with ScanSource and Barrick Mining

The main advantage of trading using opposite ScanSource and Barrick Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource 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.

The idea behind ScanSource and Barrick Mining 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.