B2gold Corp Stock Volatility
| BTO Stock | CAD 3.96 0.10 2.46% |
As of now, B2Gold Stock is moderately volatile. B2Gold Corp secures Sharpe Ratio (or Efficiency) of 0.0517, which signifies that the company had a 0.0517% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for B2Gold Corp, which you can use to evaluate the volatility of the entity. Please confirm B2Gold Corp's mean deviation of 1.92, and Coefficient Of Variation of 2548.0 to double-check if the risk estimate we provide is consistent with the expected return of 0.14%. Key indicators related to B2Gold Corp's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
B2Gold Corp Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of B2Gold daily returns, and it is calculated using variance and standard deviation. We also use B2Gold's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of B2Gold Corp volatility.
B2Gold |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as B2Gold Corp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of B2Gold Corp at lower prices. For example, an investor can purchase B2Gold stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of B2Gold Corp's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with B2Gold Stock
Moving against B2Gold Stock
B2Gold Corp Market Sensitivity And Downside Risk
B2Gold Corp's beta coefficient measures the volatility of B2Gold stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents B2Gold stock's returns against your selected market. In other words, B2Gold Corp's beta of 0.14 provides an investor with an approximation of how much risk B2Gold Corp stock can potentially add to one of your existing portfolios. B2Gold Corp currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.08. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure B2Gold Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact B2Gold Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze B2Gold Corp Demand TrendCheck current 90 days B2Gold Corp correlation with market (Dow Jones Industrial)B2Gold Beta |
B2Gold standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.72 |
It is essential to understand the difference between upside risk (as represented by B2Gold Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of B2Gold Corp's daily returns or price. Since the actual investment returns on holding a position in b2gold stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in B2Gold Corp.
B2Gold Corp Stock Volatility Analysis
Volatility refers to the frequency at which B2Gold Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with B2Gold Corp's price changes. Investors will then calculate the volatility of B2Gold Corp's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of B2Gold Corp's volatility:
Historical Volatility
This type of stock volatility measures B2Gold Corp's fluctuations based on previous trends. It's commonly used to predict B2Gold Corp's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for B2Gold Corp's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on B2Gold Corp's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. B2Gold Corp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
B2Gold Corp Projected Return Density Against Market
Assuming the 90 days trading horizon B2Gold Corp has a beta of 0.1404 suggesting as returns on the market go up, B2Gold Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding B2Gold Corp will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to B2Gold Corp or Metals & Mining sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that B2Gold Corp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a B2Gold stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
B2Gold Corp has an alpha of 0.0778, implying that it can generate a 0.0778 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a B2Gold Corp Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.B2Gold Corp Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of B2Gold Corp is 1935.59. The daily returns are distributed with a variance of 7.42 and standard deviation of 2.72. The mean deviation of B2Gold Corp is currently at 1.97. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | 0.14 | |
σ | Overall volatility | 2.72 | |
Ir | Information ratio | -0.0091 |
B2Gold Corp Stock Return Volatility
B2Gold Corp historical daily return volatility represents how much of B2Gold Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 2.7242% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7736% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About B2Gold Corp Volatility
Volatility is a rate at which the price of B2Gold Corp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of B2Gold Corp may increase or decrease. In other words, similar to B2Gold's beta indicator, it measures the risk of B2Gold Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of B2Gold Corp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Market Cap | 3.9 B | 4.1 B |
B2Gold Corp's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on B2Gold Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much B2Gold Corp's price varies over time.
3 ways to utilize B2Gold Corp's volatility to invest better
Higher B2Gold Corp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of B2Gold Corp stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. B2Gold Corp stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of B2Gold Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in B2Gold Corp's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of B2Gold Corp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
B2Gold Corp Investment Opportunity
B2Gold Corp has a volatility of 2.72 and is 3.53 times more volatile than Dow Jones Industrial. 24 percent of all equities and portfolios are less risky than B2Gold Corp. You can use B2Gold Corp to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of B2Gold Corp to be traded at C$3.8 in 90 days.Significant diversification
The correlation between B2Gold Corp and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and DJI in the same portfolio, assuming nothing else is changed.
B2Gold Corp Additional Risk Indicators
The analysis of B2Gold Corp's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in B2Gold Corp's investment and either accepting that risk or mitigating it. Along with some common measures of B2Gold Corp stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0371 | |||
| Market Risk Adjusted Performance | 0.6825 | |||
| Mean Deviation | 1.92 | |||
| Semi Deviation | 2.03 | |||
| Downside Deviation | 2.22 | |||
| Coefficient Of Variation | 2548.0 | |||
| Standard Deviation | 2.66 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
B2Gold Corp Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against B2Gold Corp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. B2Gold Corp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, B2Gold Corp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to B2Gold Corp.
When determining whether B2Gold Corp is a strong investment it is important to analyze B2Gold Corp's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact B2Gold Corp's future performance. For an informed investment choice regarding B2Gold Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in B2Gold Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in B2Gold Stock, please use our How to Invest in B2Gold Corp guide.You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.