Correlation Between Sprott Focus and Nasdaq CTA
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By analyzing existing cross correlation between Sprott Focus Trust and Nasdaq CTA Artificial, you can compare the effects of market volatilities on Sprott Focus and Nasdaq CTA 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 Sprott Focus with a short position of Nasdaq CTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Focus and Nasdaq CTA.
Diversification Opportunities for Sprott Focus and Nasdaq CTA
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sprott and Nasdaq is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Focus Trust and Nasdaq CTA Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq CTA Artificial and Sprott Focus 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 Sprott Focus Trust are associated (or correlated) with Nasdaq CTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq CTA Artificial has no effect on the direction of Sprott Focus i.e., Sprott Focus and Nasdaq CTA go up and down completely randomly.
Pair Corralation between Sprott Focus and Nasdaq CTA
Given the investment horizon of 90 days Sprott Focus is expected to generate 30.17 times less return on investment than Nasdaq CTA. But when comparing it to its historical volatility, Sprott Focus Trust is 1.43 times less risky than Nasdaq CTA. It trades about 0.01 of its potential returns per unit of risk. Nasdaq CTA Artificial is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 157,228 in Nasdaq CTA Artificial on September 19, 2024 and sell it today you would earn a total of 9,049 from holding Nasdaq CTA Artificial or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sprott Focus Trust vs. Nasdaq CTA Artificial
Performance |
| Timeline |
Sprott Focus and Nasdaq CTA Volatility Contrast
Predicted Return Density |
| Returns |
Sprott Focus Trust
Pair trading matchups for Sprott Focus
Nasdaq CTA Artificial
Pair trading matchups for Nasdaq CTA
Pair Trading with Sprott Focus and Nasdaq CTA
The main advantage of trading using opposite Sprott Focus and Nasdaq CTA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Focus position performs unexpectedly, Nasdaq CTA 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 Nasdaq CTA will offset losses from the drop in Nasdaq CTA's long position.| Sprott Focus vs. MFS Investment Grade | Sprott Focus vs. Eaton Vance National | Sprott Focus vs. Nuveen California Select | Sprott Focus vs. Federated Premier Municipal |
| Nasdaq CTA vs. Lucid Group | Nasdaq CTA vs. Dana Inc | Nasdaq CTA vs. Thor Industries | Nasdaq CTA vs. PACCAR Inc |
Check out your portfolio center.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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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