Correlation Between Onex Corp and Sprott

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

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

Diversification Opportunities for Onex Corp and Sprott

0.9

Correlation Coefficient

Onex Corp  Sprott

Almost no diversification

The 3 months correlation between Onex and Sprott is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Onex Corp and Sprott Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Inc and Onex Corp 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 Onex Corp are associated (or correlated) with Sprott. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Inc has no effect on the direction of Onex Corp i.e., Onex Corp and Sprott go up and down completely randomly.

Pair Corralation between Onex Corp and Sprott

Assuming the 90 days trading horizon Onex Corp is expected to generate 1.35 times less return on investment than Sprott. In addition to that, Onex Corp is 1.1 times more volatile than Sprott Inc. It trades about 0.26 of its total potential returns per unit of risk. Sprott Inc is currently generating about 0.39 per unit of volatility. If you would invest  7,282  in Sprott Inc on April 21, 2025 and sell it today you would earn a total of  3,067  from holding Sprott Inc or generate 42.12% return on investment over 90 days.

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

Onex Corp  vs.  Sprott Inc

Onex Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Onex Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Onex Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Sprott Inc

Risk-Adjusted Performance

Strong

Over the last 90 days Sprott Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak forward indicators, Sprott displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Onex Corp and Sprott

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

The idea behind Onex Corp and Sprott Inc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.