Correlation Between Listed Funds and Sprott Physical
Can any of the company-specific risk be diversified away by investing in both Listed Funds 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 Listed Funds and Sprott Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Sprott Physical Silver, you can compare the effects of market volatilities on Listed Funds 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 Listed Funds with a short position of Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Sprott Physical.
Diversification Opportunities for Listed Funds and Sprott Physical
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Listed and Sprott is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and Sprott Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Silver and Listed Funds 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 Listed Funds Trust 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 Silver has no effect on the direction of Listed Funds i.e., Listed Funds and Sprott Physical go up and down completely randomly.
Pair Corralation between Listed Funds and Sprott Physical
Given the investment horizon of 90 days Listed Funds Trust is expected to generate 0.33 times more return on investment than Sprott Physical. However, Listed Funds Trust is 3.0 times less risky than Sprott Physical. It trades about -0.26 of its potential returns per unit of risk. Sprott Physical Silver is currently generating about -0.18 per unit of risk. If you would invest 1,979 in Listed Funds Trust on September 3, 2024 and sell it today you would lose (62.00) from holding Listed Funds Trust or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Listed Funds Trust vs. Sprott Physical Silver
Performance |
| Timeline |
| Listed Funds Trust |
| Sprott Physical Silver |
Listed Funds and Sprott Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and Sprott Physical
The main advantage of trading using opposite Listed Funds and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds 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.| Listed Funds vs. Sprott Physical Silver | Listed Funds vs. Blue Owl Capital | Listed Funds vs. Ares Management LP | Listed Funds vs. Sprott Inc |
| Sprott Physical vs. RiverNorth Flexible Municipalome | Sprott Physical vs. Blackrock Muniholdings Ny | Sprott Physical vs. MFS Investment Grade | Sprott Physical vs. Munivest Fund |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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