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
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between B2Gold and Robex is 0.32. 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 under-perform the Robex Resources. But the stock apears to be less risky and, when comparing its historical volatility, B2Gold Corp is 102.17 times less risky than Robex Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Robex Resources is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Robex Resources on September 3, 2024 and sell it today you would earn a total of 139.00 from holding Robex Resources or generate 534.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 71.11% |
| 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. Agnico Eagle Mines | B2Gold Corp vs. Gold Fields Ltd | B2Gold Corp vs. Franco Nevada | B2Gold Corp vs. Sandstorm Gold Ltd |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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