Correlation Between TD Holdings and Sprott Physical
Can any of the company-specific risk be diversified away by investing in both TD Holdings and Sprott Physical 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 TD Holdings and Sprott Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TD Holdings and Sprott Physical Gold, you can compare the effects of market volatilities on TD Holdings and Sprott Physical 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 TD Holdings with a short position of Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Holdings and Sprott Physical.
Diversification Opportunities for TD Holdings and Sprott Physical
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GLG and Sprott is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding TD Holdings and Sprott Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Gold and TD Holdings 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 TD Holdings are associated (or correlated) with Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Gold has no effect on the direction of TD Holdings i.e., TD Holdings and Sprott Physical go up and down completely randomly.
Pair Corralation between TD Holdings and Sprott Physical
Considering the 90-day investment horizon TD Holdings is expected to under-perform the Sprott Physical. In addition to that, TD Holdings is 3.06 times more volatile than Sprott Physical Gold. It trades about -0.18 of its total potential returns per unit of risk. Sprott Physical Gold is currently generating about 0.07 per unit of volatility. If you would invest 1,752 in Sprott Physical Gold on November 2, 2024 and sell it today you would earn a total of 833.00 from holding Sprott Physical Gold or generate 47.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.67% |
| Values | Daily Returns |
TD Holdings vs. Sprott Physical Gold
Performance |
| Timeline |
| TD Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sprott Physical Gold |
TD Holdings and Sprott Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Holdings and Sprott Physical
The main advantage of trading using opposite TD Holdings and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Holdings position performs unexpectedly, Sprott Physical 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 Sprott Physical will offset losses from the drop in Sprott Physical's long position.| TD Holdings vs. Vizsla Resources Corp | TD Holdings vs. Western Copper and | TD Holdings vs. Americas Silver Corp | TD Holdings vs. EMX Royalty Corp |
| Sprott Physical vs. Sprott Physical Silver | Sprott Physical vs. Sprott Physical Platinum | Sprott Physical vs. Blue Owl Capital | Sprott Physical vs. Ares Management LP |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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