Correlation Between Sprott Junior and PGIM Rock

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

Diversification Opportunities for Sprott Junior and PGIM Rock

0.75
  Correlation Coefficient

Poor diversification

The 3 months correlation between Sprott and PGIM is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Junior Gold and PGIM Rock ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGIM Rock ETF and Sprott Junior 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 Junior Gold are associated (or correlated) with PGIM Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGIM Rock ETF has no effect on the direction of Sprott Junior i.e., Sprott Junior and PGIM Rock go up and down completely randomly.

Pair Corralation between Sprott Junior and PGIM Rock

Given the investment horizon of 90 days Sprott Junior Gold is expected to generate 32.17 times more return on investment than PGIM Rock. However, Sprott Junior is 32.17 times more volatile than PGIM Rock ETF. It trades about 0.19 of its potential returns per unit of risk. PGIM Rock ETF is currently generating about 0.19 per unit of risk. If you would invest  5,767  in Sprott Junior Gold on August 29, 2025 and sell it today you would earn a total of  2,387  from holding Sprott Junior Gold or generate 41.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Sprott Junior Gold  vs.  PGIM Rock ETF

 Performance 
       Timeline  
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 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting fundamental indicators, Sprott Junior revealed solid returns over the last few months and may actually be approaching a breakup point.
PGIM Rock ETF 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in PGIM Rock ETF are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward-looking indicators, PGIM Rock is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Sprott Junior and PGIM Rock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sprott Junior and PGIM Rock

The main advantage of trading using opposite Sprott Junior and PGIM Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Junior position performs unexpectedly, PGIM Rock 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 PGIM Rock will offset losses from the drop in PGIM Rock's long position.
The idea behind Sprott Junior Gold and PGIM Rock ETF 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.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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