Correlation Between B2Gold Corp and Robex Resources
Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and Robex Resources 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 Robex Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B2Gold Corp and Robex Resources, you can compare the effects of market volatilities on B2Gold Corp and Robex Resources 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 Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and Robex Resources.
Diversification Opportunities for B2Gold Corp and Robex Resources
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between B2Gold and Robex is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and Robex Resources go up and down completely randomly.
Pair Corralation between B2Gold Corp and Robex Resources
Considering the 90-day investment horizon B2Gold Corp is expected to generate 1.03 times more return on investment than Robex Resources. However, B2Gold Corp is 1.03 times more volatile than Robex Resources. It trades about -0.12 of its potential returns per unit of risk. Robex Resources is currently generating about -0.16 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 | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
B2Gold Corp vs. Robex Resources
Performance |
| Timeline |
| B2Gold Corp |
| Robex Resources |
B2Gold Corp and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2Gold Corp and Robex Resources
The main advantage of trading using opposite B2Gold Corp and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, Robex Resources 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 Robex Resources will offset losses from the drop in Robex Resources' long position.| B2Gold Corp vs. Sandstorm Gold Ltd | B2Gold Corp vs. Kinross Gold | B2Gold Corp vs. Alamos Gold | B2Gold Corp vs. Fortuna Silver Mines |
| Robex Resources vs. Orefinders Resources | Robex Resources vs. Leviathan Gold | Robex Resources vs. Gold Bull Resources | Robex Resources vs. Rackla Metals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |