Correlation Between B2Gold Corp and Loncor Gold
Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and Loncor 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 Loncor 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 Loncor Gold, you can compare the effects of market volatilities on B2Gold Corp and Loncor 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 Loncor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and Loncor Gold.
Diversification Opportunities for B2Gold Corp and Loncor Gold
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between B2Gold and Loncor is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and Loncor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loncor 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 Loncor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loncor Gold has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and Loncor Gold go up and down completely randomly.
Pair Corralation between B2Gold Corp and Loncor Gold
If you would invest 26.00 in Loncor Gold on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Loncor Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
B2Gold Corp vs. Loncor Gold
Performance |
| Timeline |
| B2Gold Corp |
| Loncor Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
B2Gold Corp and Loncor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2Gold Corp and Loncor Gold
The main advantage of trading using opposite B2Gold Corp and Loncor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, Loncor 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 Loncor Gold will offset losses from the drop in Loncor 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 |
| Loncor Gold vs. Galiano Gold | Loncor Gold vs. Brunswick Exploration | Loncor Gold vs. B2Gold Corp | Loncor Gold vs. Japan 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |