Correlation Between Trigon Metals and Seabridge Gold

Can any of the company-specific risk be diversified away by investing in both Trigon Metals 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 Trigon Metals and Seabridge Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Trigon Metals and Seabridge Gold, you can compare the effects of market volatilities on Trigon Metals 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 Trigon Metals with a short position of Seabridge Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigon Metals and Seabridge Gold.

Diversification Opportunities for Trigon Metals and Seabridge Gold

0.21

Correlation Coefficient

Trigon Metals  Seabridge Gold

Modest diversification

The 3 months correlation between Trigon and Seabridge is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Trigon Metals and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge Gold and Trigon Metals 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 Trigon Metals 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 Trigon Metals i.e., Trigon Metals and Seabridge Gold go up and down completely randomly.

Pair Corralation between Trigon Metals and Seabridge Gold

Given the investment horizon of 90 days Trigon Metals is expected to under-perform the Seabridge Gold. In addition to that, Trigon Metals is 1.94 times more volatile than Seabridge Gold. It trades about -0.1 of its total potential returns per unit of risk. Seabridge Gold is currently generating about 0.04 per unit of volatility. If you would invest  1,616  in Seabridge Gold on December 30, 2024 and sell it today you would earn a total of  69.00  from holding Seabridge Gold or generate 4.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Trigon Metals  vs.  Seabridge Gold

Trigon Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trigon Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Seabridge Gold

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Seabridge Gold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Seabridge Gold may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Trigon Metals and Seabridge Gold

The main advantage of trading using opposite Trigon Metals and Seabridge Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigon Metals 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.

The idea behind Trigon Metals and Seabridge Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.