Correlation Between Sprott Physical and Anfield Resources
Can any of the company-specific risk be diversified away by investing in both Sprott Physical and Anfield Resources 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 Anfield Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Physical Uranium and Anfield Resources, you can compare the effects of market volatilities on Sprott Physical and Anfield Resources 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 Anfield Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Physical and Anfield Resources.
Diversification Opportunities for Sprott Physical and Anfield Resources
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sprott and Anfield is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Physical Uranium and Anfield Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Resources 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 Uranium are associated (or correlated) with Anfield Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Resources has no effect on the direction of Sprott Physical i.e., Sprott Physical and Anfield Resources go up and down completely randomly.
Pair Corralation between Sprott Physical and Anfield Resources
Assuming the 90 days trading horizon Sprott Physical Uranium is expected to generate 0.21 times more return on investment than Anfield Resources. However, Sprott Physical Uranium is 4.73 times less risky than Anfield Resources. It trades about 0.12 of its potential returns per unit of risk. Anfield Resources is currently generating about -0.01 per unit of risk. If you would invest 2,370 in Sprott Physical Uranium on September 12, 2024 and sell it today you would earn a total of 157.00 from holding Sprott Physical Uranium or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sprott Physical Uranium vs. Anfield Resources
Performance |
| Timeline |
| Sprott Physical Uranium |
| Anfield Resources |
Sprott Physical and Anfield Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Physical and Anfield Resources
The main advantage of trading using opposite Sprott Physical and Anfield Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Physical position performs unexpectedly, Anfield Resources 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 Anfield Resources will offset losses from the drop in Anfield Resources' long position.| Sprott Physical vs. Global Atomic Corp | Sprott Physical vs. enCore Energy Corp | Sprott Physical vs. Fission Uranium Corp | Sprott Physical vs. NexGen Energy |
| Anfield Resources vs. Meli Hotels International | Anfield Resources vs. Granite Construction | Anfield Resources vs. Xenia Hotels Resorts | Anfield Resources vs. Australian Agricultural |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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