Correlation Between SSR Mining and Northern Star

Can any of the company-specific risk be diversified away by investing in both SSR Mining and Northern Star 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 SSR Mining and Northern Star into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SSR Mining and Northern Star Resources, you can compare the effects of market volatilities on SSR Mining and Northern Star 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 SSR Mining with a short position of Northern Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSR Mining and Northern Star.

Diversification Opportunities for SSR Mining and Northern Star

0.94

Correlation Coefficient

SSR Mining  Northern Star

Almost no diversification

The 3 months correlation between SSR and Northern is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and Northern Star Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Star Resources and SSR Mining 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 SSR Mining are associated (or correlated) with Northern Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Star Resources has no effect on the direction of SSR Mining i.e., SSR Mining and Northern Star go up and down completely randomly.

Pair Corralation between SSR Mining and Northern Star

Given the investment horizon of 90 days SSR Mining is expected to generate 1.17 times more return on investment than Northern Star. However, SSR Mining is 1.17 times more volatile than Northern Star Resources. It trades about 0.31 of its potential returns per unit of risk. Northern Star Resources is currently generating about 0.16 per unit of risk. If you would invest  1,318  in SSR Mining on July 3, 2025 and sell it today you would earn a total of  1,124  from holding SSR Mining or generate 85.28% return on investment over 90 days.

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

SSR Mining  vs.  Northern Star Resources

SSR Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Northern Star Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Northern Star Resources are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Northern Star reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SSR Mining and Northern Star

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

The idea behind SSR Mining and Northern Star Resources 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.