Correlation Between B2Gold Corp and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and Nighthawk 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 Nighthawk 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 Nighthawk Gold Corp, you can compare the effects of market volatilities on B2Gold Corp and Nighthawk 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 Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and Nighthawk Gold.
Diversification Opportunities for B2Gold Corp and Nighthawk Gold
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between B2Gold and Nighthawk is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk Gold 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 Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and Nighthawk Gold go up and down completely randomly.
Pair Corralation between B2Gold Corp and Nighthawk Gold
Considering the 90-day investment horizon B2Gold Corp is expected to under-perform the Nighthawk Gold. But the stock apears to be less risky and, when comparing its historical volatility, B2Gold Corp is 2.22 times less risky than Nighthawk Gold. The stock trades about 0.0 of its potential returns per unit of risk. The Nighthawk Gold Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Nighthawk Gold Corp on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Nighthawk Gold Corp or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.16% |
| Values | Daily Returns |
B2Gold Corp vs. Nighthawk Gold Corp
Performance |
| Timeline |
| B2Gold Corp |
| Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
B2Gold Corp and Nighthawk Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2Gold Corp and Nighthawk Gold
The main advantage of trading using opposite B2Gold Corp and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, Nighthawk 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold's long position.| B2Gold Corp vs. Agnico Eagle Mines | B2Gold Corp vs. Gold Fields Ltd | B2Gold Corp vs. Franco Nevada | B2Gold Corp vs. Sandstorm Gold Ltd |
| Nighthawk Gold vs. Endurance Gold | Nighthawk Gold vs. Red Pine Exploration | Nighthawk Gold vs. Puma Exploration | Nighthawk Gold vs. White 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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