Correlation Between Sprott Focus and GLOBAL
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By analyzing existing cross correlation between Sprott Focus Trust and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on Sprott Focus and GLOBAL 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 GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Focus and GLOBAL.
Diversification Opportunities for Sprott Focus and GLOBAL
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sprott and GLOBAL is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Focus Trust and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC 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 GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of Sprott Focus i.e., Sprott Focus and GLOBAL go up and down completely randomly.
Pair Corralation between Sprott Focus and GLOBAL
Given the investment horizon of 90 days Sprott Focus Trust is expected to generate 0.5 times more return on investment than GLOBAL. However, Sprott Focus Trust is 2.0 times less risky than GLOBAL. It trades about 0.16 of its potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.21 per unit of risk. If you would invest 798.00 in Sprott Focus Trust on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Sprott Focus Trust or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Focus Trust vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| Sprott Focus Trust |
| GLOBAL PAYMENTS INC |
Sprott Focus and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Focus and GLOBAL
The main advantage of trading using opposite Sprott Focus and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Focus position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL'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 |
| GLOBAL vs. AEP TEX INC | GLOBAL vs. US BANK NATIONAL | GLOBAL vs. Applied Blockchain | GLOBAL vs. Sprott Focus Trust |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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