Correlation Between Technology Communications and Sprott Gold

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

By analyzing existing cross correlation between Technology Munications Portfolio and Sprott Gold Equity, you can compare the effects of market volatilities on Technology Communications and Sprott Gold 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 Technology Communications with a short position of Sprott Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technology Communications and Sprott Gold.

Diversification Opportunities for Technology Communications and Sprott Gold

0.35

Correlation Coefficient

Technology Communications  Sprott Gold

Weak diversification

The 3 months correlation between Technology and Sprott is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Technology Munications Portfol and Sprott Gold Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Gold Equity and Technology Communications 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 Technology Munications Portfolio are associated (or correlated) with Sprott Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Gold Equity has no effect on the direction of Technology Communications i.e., Technology Communications and Sprott Gold go up and down completely randomly.

Pair Corralation between Technology Communications and Sprott Gold

Assuming the 90 days horizon Technology Munications Portfolio is expected to generate 0.46 times more return on investment than Sprott Gold. However, Technology Munications Portfolio is 2.17 times less risky than Sprott Gold. It trades about 0.3 of its potential returns per unit of risk. Sprott Gold Equity is currently generating about 0.08 per unit of risk. If you would invest  1,089  in Technology Munications Portfolio on May 2, 2025 and sell it today you would earn a total of  190.00  from holding Technology Munications Portfolio or generate 17.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Technology Munications Portfol  vs.  Sprott Gold Equity

Technology Communications

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Technology Munications Portfolio are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Technology Communications showed solid returns over the last few months and may actually be approaching a breakup point.

Sprott Gold Equity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Gold Equity are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly sluggish essential indicators, Sprott Gold may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Technology Communications and Sprott Gold

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

The idea behind Technology Munications Portfolio and Sprott Gold Equity 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.