Correlation Between FEMALE HEALTH and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and SPDR Gold 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 FEMALE HEALTH and SPDR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and SPDR Gold Shares, you can compare the effects of market volatilities on FEMALE HEALTH and SPDR Gold 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 FEMALE HEALTH with a short position of SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and SPDR Gold.
Diversification Opportunities for FEMALE HEALTH and SPDR Gold
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEMALE and SPDR is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and SPDR Gold Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Shares and FEMALE HEALTH 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 FEMALE HEALTH are associated (or correlated) with SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Shares has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and SPDR Gold go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and SPDR Gold
Assuming the 90 days trading horizon FEMALE HEALTH is expected to under-perform the SPDR Gold. In addition to that, FEMALE HEALTH is 3.51 times more volatile than SPDR Gold Shares. It trades about -0.04 of its total potential returns per unit of risk. SPDR Gold Shares is currently generating about -0.08 per unit of volatility. If you would invest 23,705 in SPDR Gold Shares on August 31, 2024 and sell it today you would lose (600.00) from holding SPDR Gold Shares or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FEMALE HEALTH vs. SPDR Gold Shares
Performance |
| Timeline |
| FEMALE HEALTH |
| SPDR Gold Shares |
FEMALE HEALTH and SPDR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and SPDR Gold
The main advantage of trading using opposite FEMALE HEALTH and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, SPDR Gold 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 SPDR Gold will offset losses from the drop in SPDR Gold's long position.| FEMALE HEALTH vs. Nok Airlines PCL | FEMALE HEALTH vs. Seven West Media | FEMALE HEALTH vs. PARKEN Sport Entertainment | FEMALE HEALTH vs. SINGAPORE AIRLINES |
| SPDR Gold vs. Cardinal Health | SPDR Gold vs. Kaiser Aluminum | SPDR Gold vs. YOOMA WELLNESS INC | SPDR Gold vs. FEMALE HEALTH |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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