Correlation Between Sprott Gold and Infrastructure Fund
Can any of the company-specific risk be diversified away by investing in both Sprott Gold and Infrastructure Fund 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 Infrastructure Fund 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 Infrastructure Fund Adviser, you can compare the effects of market volatilities on Sprott Gold and Infrastructure Fund 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 Infrastructure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Gold and Infrastructure Fund.
Diversification Opportunities for Sprott Gold and Infrastructure Fund
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sprott and Infrastructure is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Gold Equity and Infrastructure Fund Adviser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastructure Fund 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 Infrastructure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastructure Fund has no effect on the direction of Sprott Gold i.e., Sprott Gold and Infrastructure Fund go up and down completely randomly.
Pair Corralation between Sprott Gold and Infrastructure Fund
Assuming the 90 days horizon Sprott Gold Equity is expected to generate 8.18 times more return on investment than Infrastructure Fund. However, Sprott Gold is 8.18 times more volatile than Infrastructure Fund Adviser. It trades about 0.16 of its potential returns per unit of risk. Infrastructure Fund Adviser is currently generating about 0.22 per unit of risk. If you would invest 9,328 in Sprott Gold Equity on August 30, 2025 and sell it today you would earn a total of 2,243 from holding Sprott Gold Equity or generate 24.05% 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. Infrastructure Fund Adviser
Performance |
| Timeline |
| Sprott Gold Equity |
| Infrastructure Fund |
Sprott Gold and Infrastructure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Gold and Infrastructure Fund
The main advantage of trading using opposite Sprott Gold and Infrastructure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Gold position performs unexpectedly, Infrastructure Fund 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 Infrastructure Fund will offset losses from the drop in Infrastructure Fund's long position.| Sprott Gold vs. Inflation Adjusted Bond Fund | Sprott Gold vs. Transamerica Inflation Opportunities | Sprott Gold vs. Aqr Managed Futures | Sprott Gold vs. Simt Multi Asset Inflation |
| Infrastructure Fund vs. Sei Insti Mgd | Infrastructure Fund vs. Fisher Fixed Income | Infrastructure Fund vs. Balanced Fund Retail | Infrastructure Fund vs. Massmutual Premier Diversified |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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