Correlation Between Kinross Gold and Seabridge Gold
Can any of the company-specific risk be diversified away by investing in both Kinross Gold 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 Kinross Gold and Seabridge Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinross Gold and Seabridge Gold, you can compare the effects of market volatilities on Kinross Gold 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 Kinross Gold with a short position of Seabridge Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinross Gold and Seabridge Gold.
Diversification Opportunities for Kinross Gold and Seabridge Gold
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinross and Seabridge is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kinross Gold and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge Gold and Kinross Gold 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 Kinross Gold 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 Kinross Gold i.e., Kinross Gold and Seabridge Gold go up and down completely randomly.
Pair Corralation between Kinross Gold and Seabridge Gold
Considering the 90-day investment horizon Kinross Gold is expected to generate 1.06 times more return on investment than Seabridge Gold. However, Kinross Gold is 1.06 times more volatile than Seabridge Gold. It trades about 0.3 of its potential returns per unit of risk. Seabridge Gold is currently generating about 0.19 per unit of risk. If you would invest 1,038 in Kinross Gold on November 9, 2024 and sell it today you would earn a total of 153.00 from holding Kinross Gold or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinross Gold vs. Seabridge Gold
Performance |
| Timeline |
| Kinross Gold |
| Seabridge Gold |
Kinross Gold and Seabridge Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinross Gold and Seabridge Gold
The main advantage of trading using opposite Kinross Gold and Seabridge Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinross Gold 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.| Kinross Gold vs. Pan American Silver | Kinross Gold vs. Newmont Goldcorp Corp | Kinross Gold vs. Wheaton Precious Metals | Kinross Gold vs. Franco Nevada |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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