Correlation Between B2Gold Corp and MAG Silver
Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and MAG Silver 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 MAG Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B2Gold Corp and MAG Silver Corp, you can compare the effects of market volatilities on B2Gold Corp and MAG Silver 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 MAG Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and MAG Silver.
Diversification Opportunities for B2Gold Corp and MAG Silver
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between B2Gold and MAG is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and MAG Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Silver Corp 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 MAG Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Silver Corp has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and MAG Silver go up and down completely randomly.
Pair Corralation between B2Gold Corp and MAG Silver
Considering the 90-day investment horizon B2Gold Corp is expected to generate 2.23 times less return on investment than MAG Silver. In addition to that, B2Gold Corp is 1.02 times more volatile than MAG Silver Corp. It trades about 0.06 of its total potential returns per unit of risk. MAG Silver Corp is currently generating about 0.15 per unit of volatility. If you would invest 1,217 in MAG Silver Corp on August 31, 2024 and sell it today you would earn a total of 318.00 from holding MAG Silver Corp or generate 26.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B2Gold Corp vs. MAG Silver Corp
Performance |
| Timeline |
| B2Gold Corp |
| MAG Silver Corp |
B2Gold Corp and MAG Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2Gold Corp and MAG Silver
The main advantage of trading using opposite B2Gold Corp and MAG Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, MAG Silver 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 MAG Silver will offset losses from the drop in MAG Silver'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 |
| MAG Silver vs. Silvercorp Metals | MAG Silver vs. Dolly Varden Silver | MAG Silver vs. Aya Gold Silver | MAG Silver vs. Reyna Silver 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |