Correlation Between JNC Resources and B2Gold Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JNC 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 JNC 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 JNC Resources and B2Gold Corp, you can compare the effects of market volatilities on JNC 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 JNC Resources with a short position of B2Gold Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of JNC Resources and B2Gold Corp.

Diversification Opportunities for JNC Resources and B2Gold Corp

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between JNC and B2Gold is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JNC Resources and B2Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B2Gold Corp and JNC 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 JNC 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 JNC Resources i.e., JNC Resources and B2Gold Corp go up and down completely randomly.

Pair Corralation between JNC Resources and B2Gold Corp

Assuming the 90 days horizon JNC Resources is expected to generate 10.52 times more return on investment than B2Gold Corp. However, JNC Resources is 10.52 times more volatile than B2Gold Corp. It trades about 0.11 of its potential returns per unit of risk. B2Gold Corp is currently generating about -0.06 per unit of risk. If you would invest  1.10  in JNC Resources on September 13, 2024 and sell it today you would earn a total of  0.60  from holding JNC Resources or generate 54.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

JNC Resources  vs.  B2Gold Corp

 Performance 
       Timeline  
JNC Resources 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in JNC Resources are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, JNC Resources reported solid returns over the last few months and may actually be approaching a breakup point.
B2Gold Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days B2Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

JNC Resources and B2Gold Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JNC Resources and B2Gold Corp

The main advantage of trading using opposite JNC Resources and B2Gold Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JNC 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.
The idea behind JNC Resources and B2Gold 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.
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format