Correlation Between Stria Lithium and Seahawk Gold

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

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

Diversification Opportunities for Stria Lithium and Seahawk Gold

0.0

Correlation Coefficient

Stria Lithium  Seahawk Gold

Pay attention - limited upside

The 3 months correlation between Stria and Seahawk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stria Lithium and Seahawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seahawk Gold Corp and Stria Lithium 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 Stria Lithium are associated (or correlated) with Seahawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seahawk Gold Corp has no effect on the direction of Stria Lithium i.e., Stria Lithium and Seahawk Gold go up and down completely randomly.

Pair Corralation between Stria Lithium and Seahawk Gold

If you would invest  8.08  in Stria Lithium on July 23, 2025 and sell it today you would earn a total of  16.92  from holding Stria Lithium or generate 209.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Stria Lithium  vs.  Seahawk Gold Corp

Stria Lithium

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stria Lithium are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Stria Lithium reported solid returns over the last few months and may actually be approaching a breakup point.

Seahawk Gold Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Seahawk Gold Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Seahawk Gold is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Stria Lithium and Seahawk Gold

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

The idea behind Stria Lithium and Seahawk Gold Corp 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.