Correlation Between West Vault and Seabridge Gold
Can any of the company-specific risk be diversified away by investing in both West Vault 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 West Vault and Seabridge Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between West Vault Mining and Seabridge Gold, you can compare the effects of market volatilities on West Vault 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 West Vault with a short position of Seabridge Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of West Vault and Seabridge Gold.
Diversification Opportunities for West Vault and Seabridge Gold
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between West and Seabridge is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding West Vault Mining and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge Gold and West Vault 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 West Vault Mining 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 West Vault i.e., West Vault and Seabridge Gold go up and down completely randomly.
Pair Corralation between West Vault and Seabridge Gold
Assuming the 90 days horizon West Vault Mining is expected to generate 1.28 times more return on investment than Seabridge Gold. However, West Vault is 1.28 times more volatile than Seabridge Gold. It trades about 0.0 of its potential returns per unit of risk. Seabridge Gold is currently generating about -0.01 per unit of risk. If you would invest 80.00 in West Vault Mining on September 3, 2024 and sell it today you would lose (8.00) from holding West Vault Mining or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
West Vault Mining vs. Seabridge Gold
Performance |
| Timeline |
| West Vault Mining |
| Seabridge Gold |
West Vault and Seabridge Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with West Vault and Seabridge Gold
The main advantage of trading using opposite West Vault and Seabridge Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if West Vault 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.| West Vault vs. Harmony Gold Mining | West Vault vs. SPACE | West Vault vs. T Rowe Price | West Vault vs. Ampleforth |
| 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |