Correlation Between Sprott Junior and Consumer Staples

Can any of the company-specific risk be diversified away by investing in both Sprott Junior and Consumer Staples 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 Consumer Staples 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 Consumer Staples Select, you can compare the effects of market volatilities on Sprott Junior and Consumer Staples 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 Consumer Staples. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Junior and Consumer Staples.

Diversification Opportunities for Sprott Junior and Consumer Staples

-0.76

Correlation Coefficient

Sprott Junior  Consumer Staples

Pay attention - limited upside

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

Pair Corralation between Sprott Junior and Consumer Staples

Given the investment horizon of 90 days Sprott Junior Gold is expected to generate 3.68 times more return on investment than Consumer Staples. However, Sprott Junior is 3.68 times more volatile than Consumer Staples Select. It trades about 0.27 of its potential returns per unit of risk. Consumer Staples Select is currently generating about -0.04 per unit of risk. If you would invest  5,346  in Sprott Junior Gold on July 22, 2025 and sell it today you would earn a total of  2,663  from holding Sprott Junior Gold or generate 49.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Sprott Junior Gold  vs.  Consumer Staples Select

Sprott Junior Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Junior Gold are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Sprott Junior revealed solid returns over the last few months and may actually be approaching a breakup point.

Consumer Staples Select

Risk-Adjusted Performance

Weakest

Over the last 90 days Consumer Staples Select has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Consumer Staples is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Sprott Junior and Consumer Staples

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

The idea behind Sprott Junior Gold and Consumer Staples Select 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.