Correlation Between Seahawk Gold and Highway 50
Can any of the company-specific risk be diversified away by investing in both Seahawk Gold and Highway 50 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 Highway 50 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 Highway 50 Gold, you can compare the effects of market volatilities on Seahawk Gold and Highway 50 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 Highway 50. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seahawk Gold and Highway 50.
Diversification Opportunities for Seahawk Gold and Highway 50
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Seahawk and Highway is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Seahawk Gold Corp and Highway 50 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway 50 Gold 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 Highway 50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway 50 Gold has no effect on the direction of Seahawk Gold i.e., Seahawk Gold and Highway 50 go up and down completely randomly.
Pair Corralation between Seahawk Gold and Highway 50
Assuming the 90 days horizon Seahawk Gold Corp is expected to generate 10.92 times more return on investment than Highway 50. However, Seahawk Gold is 10.92 times more volatile than Highway 50 Gold. It trades about 0.13 of its potential returns per unit of risk. Highway 50 Gold is currently generating about 0.12 per unit of risk. If you would invest 2.10 in Seahawk Gold Corp on August 20, 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 | 98.44% |
| Values | Daily Returns |
Seahawk Gold Corp vs. Highway 50 Gold
Performance |
| Timeline |
| Seahawk Gold Corp |
| Highway 50 Gold |
Risk-Adjusted Performance
Fair
Weak | Strong |
Seahawk Gold and Highway 50 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seahawk Gold and Highway 50
The main advantage of trading using opposite Seahawk Gold and Highway 50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seahawk Gold position performs unexpectedly, Highway 50 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 Highway 50 will offset losses from the drop in Highway 50's 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 |
| Highway 50 vs. Niocan Inc | Highway 50 vs. Tartisan Nickel Corp | Highway 50 vs. Erin Ventures | Highway 50 vs. Canadian Manganese |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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