Correlation Between InterRent Real and B2Gold Corp
Can any of the company-specific risk be diversified away by investing in both InterRent Real 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 InterRent Real and B2Gold Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InterRent Real Estate and B2Gold Corp, you can compare the effects of market volatilities on InterRent Real 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 InterRent Real with a short position of B2Gold Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of InterRent Real and B2Gold Corp.
Diversification Opportunities for InterRent Real and B2Gold Corp
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between InterRent and B2Gold is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding InterRent Real Estate and B2Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B2Gold Corp and InterRent Real 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 InterRent Real Estate 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 InterRent Real i.e., InterRent Real and B2Gold Corp go up and down completely randomly.
Pair Corralation between InterRent Real and B2Gold Corp
Assuming the 90 days trading horizon InterRent Real Estate is expected to generate 0.67 times more return on investment than B2Gold Corp. However, InterRent Real Estate is 1.49 times less risky than B2Gold Corp. It trades about 0.0 of its potential returns per unit of risk. B2Gold Corp is currently generating about -0.04 per unit of risk. If you would invest 1,249 in InterRent Real Estate on January 24, 2024 and sell it today you would lose (25.00) from holding InterRent Real Estate or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InterRent Real Estate vs. B2Gold Corp
Performance |
| Timeline |
| InterRent Real Estate |
| B2Gold Corp |
InterRent Real and B2Gold Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InterRent Real and B2Gold Corp
The main advantage of trading using opposite InterRent Real and B2Gold Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InterRent Real 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.| InterRent Real vs. Ether Capital Corp | InterRent Real vs. KDA Group | InterRent Real vs. Denison Mines Corp |
| B2Gold Corp vs. Kinross Gold Corp | B2Gold Corp vs. IAMGold | B2Gold Corp vs. Barrick Gold Corp | B2Gold Corp vs. Agnico Eagle 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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