Correlation Between Sprott Gold and Dunham Dynamic
Can any of the company-specific risk be diversified away by investing in both Sprott Gold and Dunham Dynamic 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 Gold and Dunham Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Gold Equity and Dunham Dynamic Macro, you can compare the effects of market volatilities on Sprott Gold and Dunham Dynamic 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 Gold with a short position of Dunham Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Gold and Dunham Dynamic.
Diversification Opportunities for Sprott Gold and Dunham Dynamic
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sprott and Dunham is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Gold Equity and Dunham Dynamic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Dynamic Macro and Sprott Gold 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 Gold Equity are associated (or correlated) with Dunham Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Dynamic Macro has no effect on the direction of Sprott Gold i.e., Sprott Gold and Dunham Dynamic go up and down completely randomly.
Pair Corralation between Sprott Gold and Dunham Dynamic
Assuming the 90 days horizon Sprott Gold Equity is expected to generate 8.51 times more return on investment than Dunham Dynamic. However, Sprott Gold is 8.51 times more volatile than Dunham Dynamic Macro. It trades about 0.22 of its potential returns per unit of risk. Dunham Dynamic Macro is currently generating about 0.14 per unit of risk. If you would invest 7,798 in Sprott Gold Equity on June 11, 2025 and sell it today you would earn a total of 1,763 from holding Sprott Gold Equity or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Gold Equity vs. Dunham Dynamic Macro
Performance |
| Timeline |
| Sprott Gold Equity |
| Dunham Dynamic Macro |
Sprott Gold and Dunham Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Gold and Dunham Dynamic
The main advantage of trading using opposite Sprott Gold and Dunham Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Gold position performs unexpectedly, Dunham Dynamic 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 Dunham Dynamic will offset losses from the drop in Dunham Dynamic's long position.| Sprott Gold vs. Sprott Junior Gold | Sprott Gold vs. Sprott Gold Miners | Sprott Gold vs. Europac Gold Fund | Sprott Gold vs. US Global GO |
| Dunham Dynamic vs. Dws Global Macro | Dunham Dynamic vs. Artisan Global Opportunities | Dunham Dynamic vs. Morgan Stanley Global | Dunham Dynamic vs. Gamco Global Opportunity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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