Correlation Between Seahawk Gold and Silver Elephant

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Can any of the company-specific risk be diversified away by investing in both Seahawk Gold and Silver Elephant 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 Silver Elephant 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 Silver Elephant Mining, you can compare the effects of market volatilities on Seahawk Gold and Silver Elephant 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 Silver Elephant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seahawk Gold and Silver Elephant.

Diversification Opportunities for Seahawk Gold and Silver Elephant

0.3
  Correlation Coefficient

Weak diversification

The 3 months correlation between Seahawk and Silver is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Seahawk Gold Corp and Silver Elephant Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Elephant Mining 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 Silver Elephant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Elephant Mining has no effect on the direction of Seahawk Gold i.e., Seahawk Gold and Silver Elephant go up and down completely randomly.

Pair Corralation between Seahawk Gold and Silver Elephant

Assuming the 90 days horizon Seahawk Gold Corp is expected to generate 13.61 times more return on investment than Silver Elephant. However, Seahawk Gold is 13.61 times more volatile than Silver Elephant Mining. It trades about 0.12 of its potential returns per unit of risk. Silver Elephant Mining is currently generating about 0.12 per unit of risk. If you would invest  2.10  in Seahawk Gold Corp on August 25, 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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Seahawk Gold Corp  vs.  Silver Elephant Mining

 Performance 
       Timeline  
Seahawk Gold Corp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Seahawk Gold Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, Seahawk Gold reported solid returns over the last few months and may actually be approaching a breakup point.
Silver Elephant Mining 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Silver Elephant Mining are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Silver Elephant reported solid returns over the last few months and may actually be approaching a breakup point.

Seahawk Gold and Silver Elephant Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Seahawk Gold and Silver Elephant

The main advantage of trading using opposite Seahawk Gold and Silver Elephant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seahawk Gold position performs unexpectedly, Silver Elephant 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 Silver Elephant will offset losses from the drop in Silver Elephant's long position.
The idea behind Seahawk Gold Corp and Silver Elephant Mining 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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