Correlation Between Sprott Gold and Cavanal Hill
Can any of the company-specific risk be diversified away by investing in both Sprott Gold and Cavanal Hill 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 Gold and Cavanal Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Gold Equity and Cavanal Hill Funds, you can compare the effects of market volatilities on Sprott Gold and Cavanal Hill 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 Gold with a short position of Cavanal Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Gold and Cavanal Hill.
Diversification Opportunities for Sprott Gold and Cavanal Hill
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sprott and Cavanal is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Gold Equity and Cavanal Hill Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cavanal Hill Funds and Sprott Gold 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 Gold Equity are associated (or correlated) with Cavanal Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cavanal Hill Funds has no effect on the direction of Sprott Gold i.e., Sprott Gold and Cavanal Hill go up and down completely randomly.
Pair Corralation between Sprott Gold and Cavanal Hill
Assuming the 90 days horizon Sprott Gold is expected to generate 7.68 times less return on investment than Cavanal Hill. But when comparing it to its historical volatility, Sprott Gold Equity is 10.29 times less risky than Cavanal Hill. It trades about 0.05 of its potential returns per unit of risk. Cavanal Hill Funds is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Cavanal Hill Funds on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Cavanal Hill Funds or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.6% |
| Values | Daily Returns |
Sprott Gold Equity vs. Cavanal Hill Funds
Performance |
| Timeline |
| Sprott Gold Equity |
| Cavanal Hill Funds |
Sprott Gold and Cavanal Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Gold and Cavanal Hill
The main advantage of trading using opposite Sprott Gold and Cavanal Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Gold position performs unexpectedly, Cavanal Hill 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 Cavanal Hill will offset losses from the drop in Cavanal Hill's long position.| Sprott Gold vs. Sprott Junior Gold | Sprott Gold vs. Sprott Gold Miners | Sprott Gold vs. Europac Gold Fund | Sprott Gold vs. US Global GO |
| Cavanal Hill vs. Franklin Gold Precious | Cavanal Hill vs. Sprott Gold Equity | Cavanal Hill vs. Gabelli Gold Fund | Cavanal Hill vs. Goldman Sachs Clean |
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.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |