Correlation Between Marathon Gold and Seabridge Gold
Can any of the company-specific risk be diversified away by investing in both Marathon 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 Marathon 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 Marathon Gold and Seabridge Gold, you can compare the effects of market volatilities on Marathon 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 Marathon Gold with a short position of Seabridge Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marathon Gold and Seabridge Gold.
Diversification Opportunities for Marathon Gold and Seabridge Gold
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marathon and Seabridge is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Gold and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge Gold and Marathon 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 Marathon 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 Marathon Gold i.e., Marathon Gold and Seabridge Gold go up and down completely randomly.
Pair Corralation between Marathon Gold and Seabridge Gold
If you would invest 64.00 in Marathon Gold on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Marathon Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Marathon Gold vs. Seabridge Gold
Performance |
| Timeline |
| Marathon Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Seabridge Gold |
Marathon Gold and Seabridge Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marathon Gold and Seabridge Gold
The main advantage of trading using opposite Marathon Gold and Seabridge Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marathon 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.| Marathon Gold vs. I 80 Gold Corp | Marathon Gold vs. Wesdome Gold Mines | Marathon Gold vs. K92 Mining | Marathon Gold vs. Equinox Gold Corp |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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