Correlation Between SPDR Gold and VanEck Vectors
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and VanEck Vectors 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 SPDR Gold and VanEck Vectors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Gold Shares and VanEck Vectors Moodys, you can compare the effects of market volatilities on SPDR Gold and VanEck Vectors 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 SPDR Gold with a short position of VanEck Vectors. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and VanEck Vectors.
Diversification Opportunities for SPDR Gold and VanEck Vectors
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and VanEck is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and VanEck Vectors Moodys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vectors Moodys and SPDR Gold 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 SPDR Gold Shares are associated (or correlated) with VanEck Vectors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vectors Moodys has no effect on the direction of SPDR Gold i.e., SPDR Gold and VanEck Vectors go up and down completely randomly.
Pair Corralation between SPDR Gold and VanEck Vectors
Considering the 90-day investment horizon SPDR Gold Shares is expected to under-perform the VanEck Vectors. In addition to that, SPDR Gold is 3.44 times more volatile than VanEck Vectors Moodys. It trades about -0.13 of its total potential returns per unit of risk. VanEck Vectors Moodys is currently generating about -0.04 per unit of volatility. If you would invest 2,150 in VanEck Vectors Moodys on August 23, 2024 and sell it today you would lose (7.00) from holding VanEck Vectors Moodys or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Gold Shares vs. VanEck Vectors Moodys
Performance |
| Timeline |
| SPDR Gold Shares |
| VanEck Vectors Moodys |
SPDR Gold and VanEck Vectors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and VanEck Vectors
The main advantage of trading using opposite SPDR Gold and VanEck Vectors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, VanEck Vectors 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 VanEck Vectors will offset losses from the drop in VanEck Vectors' long position.| SPDR Gold vs. iShares Silver Trust | SPDR Gold vs. VanEck Gold Miners | SPDR Gold vs. SPDR SP 500 | SPDR Gold vs. United States Oil |
| VanEck Vectors vs. SPDR Barclays Short | VanEck Vectors vs. SPDR Bloomberg Emerging | VanEck Vectors vs. SPDR Barclays Long | VanEck Vectors vs. SPDR Barclays Short |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |