Correlation Between JSC National and Sprott Physical

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

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

Diversification Opportunities for JSC National and Sprott Physical

0.69

Correlation Coefficient

JSC National  Sprott Physical

Poor diversification

The 3 months correlation between JSC and Sprott is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding JSC National Atomic and Sprott Physical Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Uranium and JSC National 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 JSC National Atomic 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 Uranium has no effect on the direction of JSC National i.e., JSC National and Sprott Physical go up and down completely randomly.

Pair Corralation between JSC National and Sprott Physical

Assuming the 90 days trading horizon JSC National Atomic is expected to generate 0.86 times more return on investment than Sprott Physical. However, JSC National Atomic is 1.16 times less risky than Sprott Physical. It trades about 0.28 of its potential returns per unit of risk. Sprott Physical Uranium is currently generating about 0.07 per unit of risk. If you would invest  3,116  in JSC National Atomic on April 25, 2025 and sell it today you would earn a total of  1,224  from holding JSC National Atomic or generate 39.28% return on investment over 90 days.

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

JSC National Atomic  vs.  Sprott Physical Uranium

JSC National Atomic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JSC National Atomic are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, JSC National disclosed solid returns over the last few months and may actually be approaching a breakup point.

Sprott Physical Uranium

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Physical Uranium are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Sprott Physical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with JSC National and Sprott Physical

The main advantage of trading using opposite JSC National and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSC National 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 JSC National Atomic and Sprott Physical Uranium 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.

Check out your portfolio center.

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.