Correlation Between Seabridge Gold and Zhaojin Mining
Can any of the company-specific risk be diversified away by investing in both Seabridge Gold and Zhaojin Mining 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 Zhaojin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seabridge Gold and Zhaojin Mining Industry, you can compare the effects of market volatilities on Seabridge Gold and Zhaojin Mining 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 Zhaojin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seabridge Gold and Zhaojin Mining.
Diversification Opportunities for Seabridge Gold and Zhaojin Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seabridge and Zhaojin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seabridge Gold and Zhaojin Mining Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhaojin Mining Industry 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 Zhaojin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhaojin Mining Industry has no effect on the direction of Seabridge Gold i.e., Seabridge Gold and Zhaojin Mining go up and down completely randomly.
Pair Corralation between Seabridge Gold and Zhaojin Mining
Allowing for the 90-day total investment horizon Seabridge Gold is expected to generate 2.38 times less return on investment than Zhaojin Mining. But when comparing it to its historical volatility, Seabridge Gold is 1.11 times less risky than Zhaojin Mining. It trades about 0.02 of its potential returns per unit of risk. Zhaojin Mining Industry is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Zhaojin Mining Industry on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Zhaojin Mining Industry or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 15.99% |
| Values | Daily Returns |
Seabridge Gold vs. Zhaojin Mining Industry
Performance |
| Timeline |
| Seabridge Gold |
| Zhaojin Mining Industry |
Seabridge Gold and Zhaojin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seabridge Gold and Zhaojin Mining
The main advantage of trading using opposite Seabridge Gold and Zhaojin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seabridge Gold position performs unexpectedly, Zhaojin Mining 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 Zhaojin Mining will offset losses from the drop in Zhaojin Mining'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 |
| Zhaojin Mining vs. Franco Nevada | Zhaojin Mining vs. Wheaton Precious Metals | Zhaojin Mining vs. Seabridge Gold | Zhaojin Mining vs. Osisko Gold Ro |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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