Correlation Between Maple Peak and Sprott Physical

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

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

Diversification Opportunities for Maple Peak and Sprott Physical

0.0

Correlation Coefficient

Maple Peak  Sprott Physical

Pay attention - limited upside

The 3 months correlation between Maple and Sprott is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Sprott Physical Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Platinum and Maple Peak 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 Maple Peak Investments 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 Platinum has no effect on the direction of Maple Peak i.e., Maple Peak and Sprott Physical go up and down completely randomly.

Pair Corralation between Maple Peak and Sprott Physical

If you would invest  1,292  in Sprott Physical Platinum on December 27, 2024 and sell it today you would earn a total of  93.00  from holding Sprott Physical Platinum or generate 7.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Maple Peak Investments  vs.  Sprott Physical Platinum

Maple Peak Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maple Peak Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Maple Peak is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Sprott Physical Platinum

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Physical Platinum are ranked lower than 8 (%) 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 April 2025.

Pair Trading with Maple Peak and Sprott Physical

The main advantage of trading using opposite Maple Peak and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak 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 Maple Peak Investments and Sprott Physical Platinum 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.