Correlation Between Almaden Minerals and Seabridge Gold
Can any of the company-specific risk be diversified away by investing in both Almaden Minerals and Seabridge 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 Almaden Minerals and Seabridge Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almaden Minerals and Seabridge Gold, you can compare the effects of market volatilities on Almaden Minerals and Seabridge 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 Almaden Minerals with a short position of Seabridge Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almaden Minerals and Seabridge Gold.
Diversification Opportunities for Almaden Minerals and Seabridge Gold
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Almaden and Seabridge is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge Gold and Almaden 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 Almaden Minerals are associated (or correlated) with Seabridge Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seabridge Gold has no effect on the direction of Almaden Minerals i.e., Almaden Minerals and Seabridge Gold go up and down completely randomly.
Pair Corralation between Almaden Minerals and Seabridge Gold
Considering the 90-day investment horizon Almaden Minerals is expected to generate 1.34 times more return on investment than Seabridge Gold. However, Almaden Minerals is 1.34 times more volatile than Seabridge Gold. It trades about 0.13 of its potential returns per unit of risk. Seabridge Gold is currently generating about 0.02 per unit of risk. If you would invest 13.00 in Almaden Minerals on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Almaden Minerals or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
Almaden Minerals vs. Seabridge Gold
Performance |
| Timeline |
| Almaden Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Seabridge Gold |
Almaden Minerals and Seabridge Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almaden Minerals and Seabridge Gold
The main advantage of trading using opposite Almaden Minerals and Seabridge Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almaden Minerals position performs unexpectedly, Seabridge 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 Seabridge Gold will offset losses from the drop in Seabridge Gold's long position.| Almaden Minerals vs. Antioquia Gold | Almaden Minerals vs. Asante Gold | Almaden Minerals vs. Bluestone Resources | Almaden Minerals vs. Big Ridge Gold |
| Seabridge Gold vs. Franco Nevada | Seabridge Gold vs. Wheaton Precious Metals | Seabridge Gold vs. Osisko Gold Ro | Seabridge Gold vs. Sandstorm Gold Ltd |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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