Correlation Between Sprott Physical and Fidelity Advisor

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

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

Diversification Opportunities for Sprott Physical and Fidelity Advisor

0.77

Correlation Coefficient

Sprott Physical  Fidelity Advisor

Poor diversification

The 3 months correlation between Sprott and Fidelity is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Physical Gold and Fidelity Advisor Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Large and Sprott Physical 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 Physical Gold are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Large has no effect on the direction of Sprott Physical i.e., Sprott Physical and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Sprott Physical and Fidelity Advisor

Considering the 90-day investment horizon Sprott Physical Gold is expected to generate 1.94 times more return on investment than Fidelity Advisor. However, Sprott Physical is 1.94 times more volatile than Fidelity Advisor Large. It trades about 0.18 of its potential returns per unit of risk. Fidelity Advisor Large is currently generating about 0.08 per unit of risk. If you would invest  3,857  in Sprott Physical Gold on October 8, 2025 and sell it today you would earn a total of  927.00  from holding Sprott Physical Gold or generate 24.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	93.44%
Values	Daily Returns

Sprott Physical Gold  vs.  Fidelity Advisor Large

Sprott Physical Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Physical Gold are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Sprott Physical reported solid returns over the last few months and may actually be approaching a breakup point.

Fidelity Advisor Large

Risk-Adjusted Performance

Mild

Over the last 90 days Fidelity Advisor Large has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Fidelity Advisor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sprott Physical and Fidelity Advisor

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

The idea behind Sprott Physical Gold and Fidelity Advisor Large 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.