Correlation Between Seabridge Gold and IperionX Limited

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

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

Diversification Opportunities for Seabridge Gold and IperionX Limited

-0.22

Correlation Coefficient

Seabridge Gold  IperionX Limited

Very good diversification

The 3 months correlation between Seabridge and IperionX is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Seabridge Gold and IperionX Limited American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IperionX Limited American and Seabridge 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 Seabridge Gold are associated (or correlated) with IperionX Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IperionX Limited American has no effect on the direction of Seabridge Gold i.e., Seabridge Gold and IperionX Limited go up and down completely randomly.

Pair Corralation between Seabridge Gold and IperionX Limited

Allowing for the 90-day total investment horizon Seabridge Gold is expected to generate 0.82 times more return on investment than IperionX Limited. However, Seabridge Gold is 1.21 times less risky than IperionX Limited. It trades about 0.32 of its potential returns per unit of risk. IperionX Limited American is currently generating about -0.02 per unit of risk. If you would invest  2,398  in Seabridge Gold on September 12, 2025 and sell it today you would earn a total of  633.00  from holding Seabridge Gold or generate 26.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Seabridge Gold  vs.  IperionX Limited American

Seabridge Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Seabridge Gold are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Seabridge Gold sustained solid returns over the last few months and may actually be approaching a breakup point.

IperionX Limited American

Risk-Adjusted Performance

Weakest

Over the last 90 days IperionX Limited American has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Seabridge Gold and IperionX Limited

The main advantage of trading using opposite Seabridge Gold and IperionX Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seabridge Gold position performs unexpectedly, IperionX Limited 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 IperionX Limited will offset losses from the drop in IperionX Limited's long position.

The idea behind Seabridge Gold and IperionX Limited American 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.