Correlation Between Sprott Physical and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Sprott Physical and Senvest Capital 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 Physical and Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Physical Silver and Senvest Capital, you can compare the effects of market volatilities on Sprott Physical and Senvest Capital 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 Physical with a short position of Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Physical and Senvest Capital.
Diversification Opportunities for Sprott Physical and Senvest Capital
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sprott and Senvest is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Physical Silver and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital and Sprott Physical 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 Physical Silver are associated (or correlated) with Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Sprott Physical i.e., Sprott Physical and Senvest Capital go up and down completely randomly.
Pair Corralation between Sprott Physical and Senvest Capital
Assuming the 90 days trading horizon Sprott Physical is expected to generate 1.16 times less return on investment than Senvest Capital. In addition to that, Sprott Physical is 1.4 times more volatile than Senvest Capital. It trades about 0.06 of its total potential returns per unit of risk. Senvest Capital is currently generating about 0.09 per unit of volatility. If you would invest 29,000 in Senvest Capital on September 3, 2024 and sell it today you would earn a total of 5,500 from holding Senvest Capital or generate 18.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Physical Silver vs. Senvest Capital
Performance |
| Timeline |
| Sprott Physical Silver |
| Senvest Capital |
Sprott Physical and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Physical and Senvest Capital
The main advantage of trading using opposite Sprott Physical and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Physical position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.| Sprott Physical vs. Colliers International Group | Sprott Physical vs. Altus Group Limited | Sprott Physical vs. Harvest Global REIT | Sprott Physical vs. International Zeolite Corp |
| Senvest Capital vs. Rocky Mountain Liquor | Senvest Capital vs. Capstone Mining Corp | Senvest Capital vs. Globex Mining Enterprises | Senvest Capital vs. East Side Games |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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