Correlation Between Sprott Focus and Raffles Medical
Can any of the company-specific risk be diversified away by investing in both Sprott Focus and Raffles Medical 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 Sprott Focus and Raffles Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Focus Trust and Raffles Medical Group, you can compare the effects of market volatilities on Sprott Focus and Raffles Medical 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 Raffles Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Focus and Raffles Medical.
Diversification Opportunities for Sprott Focus and Raffles Medical
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sprott and Raffles is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Focus Trust and Raffles Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raffles Medical Group 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 Raffles Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raffles Medical Group has no effect on the direction of Sprott Focus i.e., Sprott Focus and Raffles Medical go up and down completely randomly.
Pair Corralation between Sprott Focus and Raffles Medical
Given the investment horizon of 90 days Sprott Focus Trust is expected to generate 0.47 times more return on investment than Raffles Medical. However, Sprott Focus Trust is 2.14 times less risky than Raffles Medical. It trades about 0.03 of its potential returns per unit of risk. Raffles Medical Group is currently generating about -0.02 per unit of risk. If you would invest 702.00 in Sprott Focus Trust on September 12, 2024 and sell it today you would earn a total of 114.00 from holding Sprott Focus Trust or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.4% |
| Values | Daily Returns |
Sprott Focus Trust vs. Raffles Medical Group
Performance |
| Timeline |
| Sprott Focus Trust |
| Raffles Medical Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sprott Focus and Raffles Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Focus and Raffles Medical
The main advantage of trading using opposite Sprott Focus and Raffles Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Focus position performs unexpectedly, Raffles Medical 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 Raffles Medical will offset losses from the drop in Raffles Medical'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 |
| Raffles Medical vs. Pennant Group | Raffles Medical vs. Surgery Partners | Raffles Medical vs. The Ensign Group | Raffles Medical vs. Encompass Health Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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