Correlation Between Seabridge Gold and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Seabridge Gold and SSR 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 SSR 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 SSR Mining, you can compare the effects of market volatilities on Seabridge Gold and SSR 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seabridge Gold and SSR Mining.
Diversification Opportunities for Seabridge Gold and SSR Mining
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seabridge and SSR is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Seabridge Gold and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Seabridge Gold i.e., Seabridge Gold and SSR Mining go up and down completely randomly.
Pair Corralation between Seabridge Gold and SSR Mining
Assuming the 90 days trading horizon Seabridge Gold is expected to generate 0.77 times more return on investment than SSR Mining. However, Seabridge Gold is 1.29 times less risky than SSR Mining. It trades about 0.03 of its potential returns per unit of risk. SSR Mining is currently generating about 0.0 per unit of risk. If you would invest 1,440 in Seabridge Gold on November 2, 2024 and sell it today you would earn a total of 379.00 from holding Seabridge Gold or generate 26.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seabridge Gold vs. SSR Mining
Performance |
| Timeline |
| Seabridge Gold |
| SSR Mining |
Seabridge Gold and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seabridge Gold and SSR Mining
The main advantage of trading using opposite Seabridge Gold and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seabridge Gold position performs unexpectedly, SSR 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 SSR Mining will offset losses from the drop in SSR Mining's long position.| Seabridge Gold vs. NovaGold Resources | Seabridge Gold vs. Sandstorm Gold Ltd | Seabridge Gold vs. MAG Silver Corp | Seabridge Gold vs. Osisko Gold Ro |
| SSR Mining vs. Pan American Silver | SSR Mining vs. MAG Silver Corp | SSR Mining vs. Osisko Gold Ro | SSR Mining 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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