Correlation Between Sprott Focus and Sit Dividend

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

By analyzing existing cross correlation between Sprott Focus Trust and Sit Dividend Growth, you can compare the effects of market volatilities on Sprott Focus and Sit Dividend 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 Focus with a short position of Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Focus and Sit Dividend.

Diversification Opportunities for Sprott Focus and Sit Dividend

0.68

Correlation Coefficient

Sprott Focus  Sit Dividend

Poor diversification

The 3 months correlation between Sprott and Sit is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Focus Trust and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth and Sprott Focus 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 Focus Trust are associated (or correlated) with Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Sprott Focus i.e., Sprott Focus and Sit Dividend go up and down completely randomly.

Pair Corralation between Sprott Focus and Sit Dividend

Given the investment horizon of 90 days Sprott Focus is expected to generate 1.04 times less return on investment than Sit Dividend. In addition to that, Sprott Focus is 1.43 times more volatile than Sit Dividend Growth. It trades about 0.09 of its total potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.13 per unit of volatility. If you would invest  1,721  in Sit Dividend Growth on August 13, 2025 and sell it today you would earn a total of  75.00  from holding Sit Dividend Growth or generate 4.36% return on investment over 90 days.

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

Sprott Focus Trust  vs.  Sit Dividend Growth

Sprott Focus Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Focus Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Sprott Focus is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sit Dividend Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sit Dividend Growth are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Sit Dividend 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 Focus and Sit Dividend

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

The idea behind Sprott Focus Trust and Sit Dividend Growth 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.