Correlation Between Seabridge Gold and First Trust
Can any of the company-specific risk be diversified away by investing in both Seabridge Gold and First Trust 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 Seabridge Gold and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seabridge Gold and First Trust Exchange Traded, you can compare the effects of market volatilities on Seabridge Gold and First Trust 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 Seabridge Gold with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seabridge Gold and First Trust.
Diversification Opportunities for Seabridge Gold and First Trust
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seabridge and First is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Seabridge Gold and First Trust Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Exchange and Seabridge 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 Seabridge Gold are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Exchange has no effect on the direction of Seabridge Gold i.e., Seabridge Gold and First Trust go up and down completely randomly.
Pair Corralation between Seabridge Gold and First Trust
Allowing for the 90-day total investment horizon Seabridge Gold is expected to generate 19.67 times more return on investment than First Trust. However, Seabridge Gold is 19.67 times more volatile than First Trust Exchange Traded. It trades about 0.02 of its potential returns per unit of risk. First Trust Exchange Traded is currently generating about 0.22 per unit of risk. If you would invest 1,306 in Seabridge Gold on September 12, 2024 and sell it today you would earn a total of 57.00 from holding Seabridge Gold or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.53% |
| Values | Daily Returns |
Seabridge Gold vs. First Trust Exchange Traded
Performance |
| Timeline |
| Seabridge Gold |
| First Trust Exchange |
Seabridge Gold and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seabridge Gold and First Trust
The main advantage of trading using opposite Seabridge Gold and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seabridge Gold position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Seabridge Gold vs. Franco Nevada | Seabridge Gold vs. Wheaton Precious Metals | Seabridge Gold vs. Osisko Gold Ro | Seabridge Gold vs. Sandstorm Gold Ltd |
| First Trust vs. Valued Advisers Trust | First Trust vs. Columbia Diversified Fixed | First Trust vs. Principal Exchange Traded Funds | First Trust vs. Doubleline Etf Trust |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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