Correlation Between Sprott Physical and Global X
Can any of the company-specific risk be diversified away by investing in both Sprott Physical and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Physical Silver and Global X Silver, you can compare the effects of market volatilities on Sprott Physical and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Physical and Global X.
Diversification Opportunities for Sprott Physical and Global X
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sprott and Global is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Physical Silver and Global X Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Silver 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 Silver are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Silver has no effect on the direction of Sprott Physical i.e., Sprott Physical and Global X go up and down completely randomly.
Pair Corralation between Sprott Physical and Global X
Given the investment horizon of 90 days Sprott Physical is expected to generate 2.1 times less return on investment than Global X. But when comparing it to its historical volatility, Sprott Physical Silver is 1.48 times less risky than Global X. It trades about 0.17 of its potential returns per unit of risk. Global X Silver is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 4,787 in Global X Silver on June 11, 2025 and sell it today you would earn a total of 1,502 from holding Global X Silver or generate 31.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Physical Silver vs. Global X Silver
Performance |
| Timeline |
| Sprott Physical Silver |
| Global X Silver |
Sprott Physical and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Physical and Global X
The main advantage of trading using opposite Sprott Physical and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Physical position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Sprott Physical vs. Sprott Physical Gold | Sprott Physical vs. Sprott Physical Platinum | Sprott Physical vs. Blue Owl Capital | Sprott Physical vs. Ares Management LP |
| Global X vs. Amplify Junior Silver | Global X vs. VanEck Junior Gold | Global X vs. Pan American Silver | Global X vs. Coeur Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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