Correlation Between Orefinders Resources and B2Gold Corp
Can any of the company-specific risk be diversified away by investing in both Orefinders Resources and B2Gold Corp 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 Orefinders Resources and B2Gold Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orefinders Resources and B2Gold Corp, you can compare the effects of market volatilities on Orefinders Resources and B2Gold Corp 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 Orefinders Resources with a short position of B2Gold Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orefinders Resources and B2Gold Corp.
Diversification Opportunities for Orefinders Resources and B2Gold Corp
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Orefinders and B2Gold is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Orefinders Resources and B2Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B2Gold Corp and Orefinders Resources 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 Orefinders Resources are associated (or correlated) with B2Gold Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B2Gold Corp has no effect on the direction of Orefinders Resources i.e., Orefinders Resources and B2Gold Corp go up and down completely randomly.
Pair Corralation between Orefinders Resources and B2Gold Corp
Assuming the 90 days horizon Orefinders Resources is expected to under-perform the B2Gold Corp. In addition to that, Orefinders Resources is 2.2 times more volatile than B2Gold Corp. It trades about -0.1 of its total potential returns per unit of risk. B2Gold Corp is currently generating about -0.13 per unit of volatility. If you would invest 257.00 in B2Gold Corp on November 4, 2024 and sell it today you would lose (15.00) from holding B2Gold Corp or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Orefinders Resources vs. B2Gold Corp
Performance |
| Timeline |
| Orefinders Resources |
| B2Gold Corp |
Orefinders Resources and B2Gold Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orefinders Resources and B2Gold Corp
The main advantage of trading using opposite Orefinders Resources and B2Gold Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orefinders Resources position performs unexpectedly, B2Gold Corp 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 B2Gold Corp will offset losses from the drop in B2Gold Corp's long position.| Orefinders Resources vs. Lavras Gold Corp | Orefinders Resources vs. TRU Precious Metals | Orefinders Resources vs. North Peak Resources | Orefinders Resources vs. Nine Mile Metals |
| B2Gold Corp vs. Sandstorm Gold Ltd | B2Gold Corp vs. Kinross Gold | B2Gold Corp vs. Alamos Gold | B2Gold Corp vs. Fortuna Silver Mines |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |