Correlation Between Contango ORE and Seabridge Gold
Can any of the company-specific risk be diversified away by investing in both Contango ORE 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 Contango ORE and Seabridge Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contango ORE and Seabridge Gold, you can compare the effects of market volatilities on Contango ORE 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 Contango ORE with a short position of Seabridge Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contango ORE and Seabridge Gold.
Diversification Opportunities for Contango ORE and Seabridge Gold
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Contango and Seabridge is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Contango ORE and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge Gold and Contango ORE 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 Contango ORE 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 Contango ORE i.e., Contango ORE and Seabridge Gold go up and down completely randomly.
Pair Corralation between Contango ORE and Seabridge Gold
Given the investment horizon of 90 days Contango ORE is expected to generate 3.81 times less return on investment than Seabridge Gold. In addition to that, Contango ORE is 1.31 times more volatile than Seabridge Gold. It trades about 0.04 of its total potential returns per unit of risk. Seabridge Gold is currently generating about 0.19 per unit of volatility. If you would invest 1,192 in Seabridge Gold on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Seabridge Gold or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contango ORE vs. Seabridge Gold
Performance |
| Timeline |
| Contango ORE |
| Seabridge Gold |
Contango ORE and Seabridge Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contango ORE and Seabridge Gold
The main advantage of trading using opposite Contango ORE and Seabridge Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contango ORE 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.| Contango ORE vs. First Guaranty Bancshares | Contango ORE vs. Glen Burnie Bancorp | Contango ORE vs. Princeton Capital |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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