Correlation Between Sprott Physical and Global Crossing

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

By analyzing existing cross correlation between Sprott Physical Silver and Global Crossing Airlines, you can compare the effects of market volatilities on Sprott Physical and Global Crossing 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 Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Physical and Global Crossing.

Diversification Opportunities for Sprott Physical and Global Crossing

-0.38

Correlation Coefficient

Sprott Physical  Global Crossing

Very good diversification

The 3 months correlation between Sprott and Global is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Physical Silver and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Silver are associated (or correlated) with Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Sprott Physical i.e., Sprott Physical and Global Crossing go up and down completely randomly.

Pair Corralation between Sprott Physical and Global Crossing

Assuming the 90 days trading horizon Sprott Physical Silver is expected to generate 0.44 times more return on investment than Global Crossing. However, Sprott Physical Silver is 2.26 times less risky than Global Crossing. It trades about 0.16 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.01 per unit of risk. If you would invest  1,530  in Sprott Physical Silver on April 20, 2025 and sell it today you would earn a total of  238.00  from holding Sprott Physical Silver or generate 15.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Sprott Physical Silver  vs.  Global Crossing Airlines

Sprott Physical Silver

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Physical Silver are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Sprott Physical displayed solid returns over the last few months and may actually be approaching a breakup point.

Global Crossing Airlines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Crossing Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Global Crossing is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Sprott Physical and Global Crossing

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

The idea behind Sprott Physical Silver and Global Crossing Airlines 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.