Correlation Between Seahawk Gold and Erin Ventures
Can any of the company-specific risk be diversified away by investing in both Seahawk Gold and Erin Ventures 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 Seahawk Gold and Erin Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seahawk Gold Corp and Erin Ventures, you can compare the effects of market volatilities on Seahawk Gold and Erin Ventures 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 Seahawk Gold with a short position of Erin Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seahawk Gold and Erin Ventures.
Diversification Opportunities for Seahawk Gold and Erin Ventures
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seahawk and Erin is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Seahawk Gold Corp and Erin Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erin Ventures and Seahawk 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 Seahawk Gold Corp are associated (or correlated) with Erin Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erin Ventures has no effect on the direction of Seahawk Gold i.e., Seahawk Gold and Erin Ventures go up and down completely randomly.
Pair Corralation between Seahawk Gold and Erin Ventures
Assuming the 90 days horizon Seahawk Gold Corp is expected to generate 10.42 times more return on investment than Erin Ventures. However, Seahawk Gold is 10.42 times more volatile than Erin Ventures. It trades about 0.12 of its potential returns per unit of risk. Erin Ventures is currently generating about 0.12 per unit of risk. If you would invest 2.10 in Seahawk Gold Corp on August 18, 2025 and sell it today you would earn a total of 25.90 from holding Seahawk Gold Corp or generate 1233.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seahawk Gold Corp vs. Erin Ventures
Performance |
| Timeline |
| Seahawk Gold Corp |
| Erin Ventures |
Seahawk Gold and Erin Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seahawk Gold and Erin Ventures
The main advantage of trading using opposite Seahawk Gold and Erin Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seahawk Gold position performs unexpectedly, Erin Ventures 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 Erin Ventures will offset losses from the drop in Erin Ventures' long position.| Seahawk Gold vs. Erin Ventures | Seahawk Gold vs. Pan American Energy | Seahawk Gold vs. Argentina Lithium Energy | Seahawk Gold vs. Silver Elephant Mining |
| Erin Ventures vs. Camino Minerals | Erin Ventures vs. Canadian Manganese | Erin Ventures vs. Seahawk Gold Corp | Erin Ventures vs. SPC Nickel Corp |
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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