Correlation Between B2Gold Corp and Mayfair Gold

Can any of the company-specific risk be diversified away by investing in both B2Gold Corp and Mayfair Gold 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 Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between B2Gold Corp and Mayfair Gold Corp, you can compare the effects of market volatilities on B2Gold Corp and Mayfair Gold 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 Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2Gold Corp and Mayfair Gold.

Diversification Opportunities for B2Gold Corp and Mayfair Gold

0.66

Correlation Coefficient

B2Gold Corp  Mayfair Gold

Poor diversification

The 3 months correlation between B2Gold and Mayfair is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding B2Gold Corp and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of B2Gold Corp i.e., B2Gold Corp and Mayfair Gold go up and down completely randomly.

Pair Corralation between B2Gold Corp and Mayfair Gold

Considering the 90-day investment horizon B2Gold Corp is expected to generate 0.82 times more return on investment than Mayfair Gold. However, B2Gold Corp is 1.22 times less risky than Mayfair Gold. It trades about -0.01 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about -0.07 per unit of risk. If you would invest  276.00  in B2Gold Corp on December 1, 2024 and sell it today you would lose (10.00) from holding B2Gold Corp or give up 3.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

B2Gold Corp  vs.  Mayfair Gold Corp

B2Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days B2Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, B2Gold Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Mayfair Gold Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mayfair Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with B2Gold Corp and Mayfair Gold

The main advantage of trading using opposite B2Gold Corp and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2Gold Corp position performs unexpectedly, Mayfair Gold 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.

The idea behind B2Gold Corp and Mayfair Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.