Correlation Between ARK 21Shares and Sprott Physical

Can any of the company-specific risk be diversified away by investing in both ARK 21Shares and Sprott Physical 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 ARK 21Shares and Sprott Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ARK 21Shares Active and Sprott Physical Platinum, you can compare the effects of market volatilities on ARK 21Shares and Sprott Physical 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 ARK 21Shares with a short position of Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARK 21Shares and Sprott Physical.

Diversification Opportunities for ARK 21Shares and Sprott Physical

-0.76

Correlation Coefficient

ARK 21Shares  Sprott Physical

Pay attention - limited upside

The 3 months correlation between ARK and Sprott is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ARK 21Shares Active and Sprott Physical Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Platinum and ARK 21Shares 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 ARK 21Shares Active are associated (or correlated) with Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Platinum has no effect on the direction of ARK 21Shares i.e., ARK 21Shares and Sprott Physical go up and down completely randomly.

Pair Corralation between ARK 21Shares and Sprott Physical

If you would invest  944.00  in Sprott Physical Platinum on May 5, 2025 and sell it today you would earn a total of  262.00  from holding Sprott Physical Platinum or generate 27.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

ARK 21Shares Active  vs.  Sprott Physical Platinum

ARK 21Shares Active

Risk-Adjusted Performance

Very Weak

Over the last 90 days ARK 21Shares Active has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, ARK 21Shares is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sprott Physical Platinum

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Physical Platinum are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Sprott Physical reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ARK 21Shares and Sprott Physical

The main advantage of trading using opposite ARK 21Shares and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARK 21Shares position performs unexpectedly, Sprott Physical 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 Physical will offset losses from the drop in Sprott Physical's long position.

The idea behind ARK 21Shares Active and Sprott Physical Platinum 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.