Correlation Between Avino Silver and Seabridge Gold

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

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

Diversification Opportunities for Avino Silver and Seabridge Gold

0.9

Correlation Coefficient

Avino Silver  Seabridge Gold

Almost no diversification

The 3 months correlation between Avino and Seabridge is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Seabridge Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seabridge Gold and Avino Silver 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 Avino Silver Gold 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 Avino Silver i.e., Avino Silver and Seabridge Gold go up and down completely randomly.

Pair Corralation between Avino Silver and Seabridge Gold

Considering the 90-day investment horizon Avino Silver Gold is expected to generate 1.46 times more return on investment than Seabridge Gold. However, Avino Silver is 1.46 times more volatile than Seabridge Gold. It trades about -0.04 of its potential returns per unit of risk. Seabridge Gold is currently generating about -0.18 per unit of risk. If you would invest  110.00  in Avino Silver Gold on September 28, 2024 and sell it today you would lose (17.00) from holding Avino Silver Gold or give up 15.45% of portfolio value over 90 days.

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

Avino Silver Gold  vs.  Seabridge Gold

Avino Silver Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avino Silver Gold has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Seabridge Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seabridge Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Avino Silver and Seabridge Gold

The main advantage of trading using opposite Avino Silver and Seabridge Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver 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 Avino Silver Gold 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.