Correlation Between B2Gold Corp and Kinross Gold
Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and Kinross Gold 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 Kinross Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B2Gold Corp and Kinross Gold, you can compare the effects of market volatilities on B2Gold Corp and Kinross Gold 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 Kinross Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and Kinross Gold.
Diversification Opportunities for B2Gold Corp and Kinross Gold
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between B2Gold and Kinross is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and Kinross Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinross Gold 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 Kinross Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinross Gold has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and Kinross Gold go up and down completely randomly.
Pair Corralation between B2Gold Corp and Kinross Gold
Considering the 90-day investment horizon B2Gold Corp is expected to under-perform the Kinross Gold. But the stock apears to be less risky and, when comparing its historical volatility, B2Gold Corp is 1.49 times less risky than Kinross Gold. The stock trades about -0.26 of its potential returns per unit of risk. The Kinross Gold is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,053 in Kinross Gold on August 26, 2024 and sell it today you would lose (31.00) from holding Kinross Gold or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B2Gold Corp vs. Kinross Gold
Performance |
| Timeline |
| B2Gold Corp |
| Kinross Gold |
B2Gold Corp and Kinross Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2Gold Corp and Kinross Gold
The main advantage of trading using opposite B2Gold Corp and Kinross Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, Kinross Gold 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 Kinross Gold will offset losses from the drop in Kinross Gold'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 |
| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |