Correlation Between B2Gold Corp and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and Agnico Eagle 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 B2Gold Corp and Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B2Gold Corp and Agnico Eagle Mines, you can compare the effects of market volatilities on B2Gold Corp and Agnico Eagle 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 B2Gold Corp with a short position of Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and Agnico Eagle.
Diversification Opportunities for B2Gold Corp and Agnico Eagle
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between B2Gold and Agnico is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines and B2Gold Corp 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 B2Gold Corp are associated (or correlated) with Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and Agnico Eagle go up and down completely randomly.
Pair Corralation between B2Gold Corp and Agnico Eagle
Considering the 90-day investment horizon B2Gold Corp is expected to under-perform the Agnico Eagle. In addition to that, B2Gold Corp is 1.26 times more volatile than Agnico Eagle Mines. It trades about -0.02 of its total potential returns per unit of risk. Agnico Eagle Mines is currently generating about 0.06 per unit of volatility. If you would invest 5,291 in Agnico Eagle Mines on October 20, 2024 and sell it today you would earn a total of 3,212 from holding Agnico Eagle Mines or generate 60.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
B2Gold Corp vs. Agnico Eagle Mines
Performance |
| Timeline |
| B2Gold Corp |
| Agnico Eagle Mines |
B2Gold Corp and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2Gold Corp and Agnico Eagle
The main advantage of trading using opposite B2Gold Corp and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, Agnico Eagle 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 Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| B2Gold Corp vs. Sandstorm Gold Ltd | B2Gold Corp vs. Kinross Gold | B2Gold Corp vs. Alamos Gold | B2Gold Corp vs. Fortuna Silver Mines |
| Agnico Eagle vs. Wheaton Precious Metals | Agnico Eagle vs. Newmont Goldcorp Corp | Agnico Eagle vs. Kinross Gold | Agnico Eagle vs. Gold Fields Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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