Correlation Between OneAscent International and Sprott Junior

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Can any of the company-specific risk be diversified away by investing in both OneAscent International and Sprott Junior 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 OneAscent International and Sprott Junior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneAscent International Equity and Sprott Junior Gold, you can compare the effects of market volatilities on OneAscent International and Sprott Junior 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 OneAscent International with a short position of Sprott Junior. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneAscent International and Sprott Junior.

Diversification Opportunities for OneAscent International and Sprott Junior

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between OneAscent and Sprott is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding OneAscent International Equity and Sprott Junior Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Junior Gold and OneAscent International 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 OneAscent International Equity are associated (or correlated) with Sprott Junior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Junior Gold has no effect on the direction of OneAscent International i.e., OneAscent International and Sprott Junior go up and down completely randomly.

Pair Corralation between OneAscent International and Sprott Junior

Given the investment horizon of 90 days OneAscent International is expected to generate 13.0 times less return on investment than Sprott Junior. But when comparing it to its historical volatility, OneAscent International Equity is 4.39 times less risky than Sprott Junior. It trades about 0.05 of its potential returns per unit of risk. Sprott Junior Gold is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  6,451  in Sprott Junior Gold on September 11, 2025 and sell it today you would earn a total of  2,096  from holding Sprott Junior Gold or generate 32.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

OneAscent International Equity  vs.  Sprott Junior Gold

 Performance 
       Timeline  
OneAscent International 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in OneAscent International Equity are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, OneAscent International is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Sprott Junior Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Junior Gold are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile fundamental indicators, Sprott Junior revealed solid returns over the last few months and may actually be approaching a breakup point.

OneAscent International and Sprott Junior Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OneAscent International and Sprott Junior

The main advantage of trading using opposite OneAscent International and Sprott Junior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneAscent International position performs unexpectedly, Sprott Junior 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 Junior will offset losses from the drop in Sprott Junior's long position.
The idea behind OneAscent International Equity and Sprott Junior Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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