Correlation Between Sprott Gold and The Hartford
Can any of the company-specific risk be diversified away by investing in both Sprott Gold and The Hartford 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 The Hartford 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 The Hartford Checks, you can compare the effects of market volatilities on Sprott Gold and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Gold and The Hartford.
Diversification Opportunities for Sprott Gold and The Hartford
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sprott and The is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Gold Equity and The Hartford Checks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Checks 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Checks has no effect on the direction of Sprott Gold i.e., Sprott Gold and The Hartford go up and down completely randomly.
Pair Corralation between Sprott Gold and The Hartford
Assuming the 90 days horizon Sprott Gold Equity is expected to generate 2.57 times more return on investment than The Hartford. However, Sprott Gold is 2.57 times more volatile than The Hartford Checks. It trades about 0.21 of its potential returns per unit of risk. The Hartford Checks is currently generating about 0.11 per unit of risk. If you would invest 5,197 in Sprott Gold Equity on October 21, 2024 and sell it today you would earn a total of 272.00 from holding Sprott Gold Equity or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Gold Equity vs. The Hartford Checks
Performance |
| Timeline |
| Sprott Gold Equity |
| Hartford Checks |
Sprott Gold and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Gold and The Hartford
The main advantage of trading using opposite Sprott Gold and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Gold position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford'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 |
| The Hartford vs. Gabelli Gold Fund | The Hartford vs. Precious Metals And | The Hartford vs. Sprott Gold Equity | The Hartford vs. Oppenheimer Gold Special |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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