Correlation Between B2Gold Corp and Brunswick Exploration
Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and Brunswick Exploration 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 Brunswick Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B2Gold Corp and Brunswick Exploration, you can compare the effects of market volatilities on B2Gold Corp and Brunswick Exploration 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 Brunswick Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and Brunswick Exploration.
Diversification Opportunities for B2Gold Corp and Brunswick Exploration
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between B2Gold and Brunswick is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and Brunswick Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick Exploration 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 Brunswick Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick Exploration has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and Brunswick Exploration go up and down completely randomly.
Pair Corralation between B2Gold Corp and Brunswick Exploration
Considering the 90-day investment horizon B2Gold Corp is expected to generate 0.35 times more return on investment than Brunswick Exploration. However, B2Gold Corp is 2.89 times less risky than Brunswick Exploration. It trades about -0.12 of its potential returns per unit of risk. Brunswick Exploration is currently generating about -0.05 per unit of risk. If you would invest 249.00 in B2Gold Corp on October 25, 2024 and sell it today you would lose (14.00) from holding B2Gold Corp or give up 5.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
B2Gold Corp vs. Brunswick Exploration
Performance |
| Timeline |
| B2Gold Corp |
| Brunswick Exploration |
B2Gold Corp and Brunswick Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2Gold Corp and Brunswick Exploration
The main advantage of trading using opposite B2Gold Corp and Brunswick Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, Brunswick Exploration 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 Brunswick Exploration will offset losses from the drop in Brunswick Exploration'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 |
| Brunswick Exploration vs. Heliostar Metals | Brunswick Exploration vs. Independence Gold Corp | Brunswick Exploration vs. Westward Gold | Brunswick Exploration vs. Snowline Gold Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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