Correlation Between Sprott Silver and WisdomTree Inflation
Can any of the company-specific risk be diversified away by investing in both Sprott Silver and WisdomTree Inflation 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 Silver and WisdomTree Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Silver Miners and WisdomTree Inflation Plus, you can compare the effects of market volatilities on Sprott Silver and WisdomTree Inflation 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 Silver with a short position of WisdomTree Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Silver and WisdomTree Inflation.
Diversification Opportunities for Sprott Silver and WisdomTree Inflation
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sprott and WisdomTree is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Silver Miners and WisdomTree Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Inflation Plus and Sprott Silver 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 Silver Miners are associated (or correlated) with WisdomTree Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Inflation Plus has no effect on the direction of Sprott Silver i.e., Sprott Silver and WisdomTree Inflation go up and down completely randomly.
Pair Corralation between Sprott Silver and WisdomTree Inflation
Given the investment horizon of 90 days Sprott Silver Miners is expected to generate 4.47 times more return on investment than WisdomTree Inflation. However, Sprott Silver is 4.47 times more volatile than WisdomTree Inflation Plus. It trades about 0.34 of its potential returns per unit of risk. WisdomTree Inflation Plus is currently generating about 0.19 per unit of risk. If you would invest 3,978 in Sprott Silver Miners on October 26, 2025 and sell it today you would earn a total of 3,916 from holding Sprott Silver Miners or generate 98.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Silver Miners vs. WisdomTree Inflation Plus
Performance |
| Timeline |
| Sprott Silver Miners |
| WisdomTree Inflation Plus |
Sprott Silver and WisdomTree Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Silver and WisdomTree Inflation
The main advantage of trading using opposite Sprott Silver and WisdomTree Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Silver position performs unexpectedly, WisdomTree Inflation 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 WisdomTree Inflation will offset losses from the drop in WisdomTree Inflation's long position.| Sprott Silver vs. Franklin Focused Growth | Sprott Silver vs. Invesco DB Precious | Sprott Silver vs. Pacer Funds Trust | Sprott Silver vs. Fidelity Disruptive Technology |
| WisdomTree Inflation vs. WisdomTree MidCap Quality | WisdomTree Inflation vs. Litman Gregory Funds | WisdomTree Inflation vs. Tidal Trust II | WisdomTree Inflation vs. Tidal Trust II |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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