Correlation Between HudBay Minerals and B2Gold Corp
Can any of the company-specific risk be diversified away by investing in both HudBay Minerals 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 HudBay Minerals and B2Gold Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HudBay Minerals and B2Gold Corp, you can compare the effects of market volatilities on HudBay Minerals 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 HudBay Minerals with a short position of B2Gold Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HudBay Minerals and B2Gold Corp.
Diversification Opportunities for HudBay Minerals and B2Gold Corp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HudBay and B2Gold is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding HudBay Minerals and B2Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B2Gold Corp and HudBay Minerals 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 HudBay Minerals 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 HudBay Minerals i.e., HudBay Minerals and B2Gold Corp go up and down completely randomly.
Pair Corralation between HudBay Minerals and B2Gold Corp
Assuming the 90 days trading horizon HudBay Minerals is expected to generate 0.91 times more return on investment than B2Gold Corp. However, HudBay Minerals is 1.1 times less risky than B2Gold Corp. It trades about 0.16 of its potential returns per unit of risk. B2Gold Corp is currently generating about 0.07 per unit of risk. If you would invest 1,714 in HudBay Minerals on September 4, 2025 and sell it today you would earn a total of 584.00 from holding HudBay Minerals or generate 34.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HudBay Minerals vs. B2Gold Corp
Performance |
| Timeline |
| HudBay Minerals |
| B2Gold Corp |
HudBay Minerals and B2Gold Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HudBay Minerals and B2Gold Corp
The main advantage of trading using opposite HudBay Minerals and B2Gold Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HudBay Minerals 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.| HudBay Minerals vs. Super Micro Computer, | HudBay Minerals vs. High Liner Foods | HudBay Minerals vs. Advent Wireless | HudBay Minerals vs. Atrium Mortgage Investment |
| B2Gold Corp vs. Verizon Communications CDR | B2Gold Corp vs. Uniserve Communications Corp | B2Gold Corp vs. Partners Value Investments | B2Gold Corp vs. Russell Investments Global |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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