Correlation Between Brunswick Exploration and B2Gold Corp
Can any of the company-specific risk be diversified away by investing in both Brunswick Exploration and B2Gold Corp 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 Brunswick Exploration and B2Gold Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick Exploration and B2Gold Corp, you can compare the effects of market volatilities on Brunswick Exploration and B2Gold Corp 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 Brunswick Exploration with a short position of B2Gold Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick Exploration and B2Gold Corp.
Diversification Opportunities for Brunswick Exploration and B2Gold Corp
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Brunswick and B2Gold is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick Exploration and B2Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B2Gold Corp and Brunswick Exploration 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 Brunswick Exploration are associated (or correlated) with B2Gold Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B2Gold Corp has no effect on the direction of Brunswick Exploration i.e., Brunswick Exploration and B2Gold Corp go up and down completely randomly.
Pair Corralation between Brunswick Exploration and B2Gold Corp
Assuming the 90 days horizon Brunswick Exploration is expected to under-perform the B2Gold Corp. In addition to that, Brunswick Exploration is 2.53 times more volatile than B2Gold Corp. It trades about -0.12 of its total potential returns per unit of risk. B2Gold Corp is currently generating about -0.13 per unit of volatility. If you would invest 257.00 in B2Gold Corp on November 4, 2024 and sell it today you would lose (15.00) from holding B2Gold Corp or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brunswick Exploration vs. B2Gold Corp
Performance |
| Timeline |
| Brunswick Exploration |
| B2Gold Corp |
Brunswick Exploration and B2Gold Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick Exploration and B2Gold Corp
The main advantage of trading using opposite Brunswick Exploration and B2Gold Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick Exploration position performs unexpectedly, B2Gold Corp 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 B2Gold Corp will offset losses from the drop in B2Gold Corp's long position.| Brunswick Exploration vs. Newcore Gold | Brunswick Exploration vs. Cerrado Gold | Brunswick Exploration vs. Palamina Corp | Brunswick Exploration vs. Gold Springs Resource |
| B2Gold Corp vs. Sandstorm Gold Ltd | B2Gold Corp vs. Kinross Gold | B2Gold Corp vs. Alamos Gold | B2Gold Corp vs. Fortuna Silver Mines |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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