Correlation Between SPDR Gold and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Credit Suisse 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 Credit Suisse 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 Credit Suisse X Links, you can compare the effects of market volatilities on SPDR Gold and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Credit Suisse.
Diversification Opportunities for SPDR Gold and Credit Suisse
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Credit is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Credit Suisse X Links in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse X 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse X has no effect on the direction of SPDR Gold i.e., SPDR Gold and Credit Suisse go up and down completely randomly.
Pair Corralation between SPDR Gold and Credit Suisse
Considering the 90-day investment horizon SPDR Gold Shares is expected to generate 0.69 times more return on investment than Credit Suisse. However, SPDR Gold Shares is 1.44 times less risky than Credit Suisse. It trades about 0.1 of its potential returns per unit of risk. Credit Suisse X Links is currently generating about 0.06 per unit of risk. If you would invest 18,253 in SPDR Gold Shares on August 31, 2024 and sell it today you would earn a total of 6,306 from holding SPDR Gold Shares or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Gold Shares vs. Credit Suisse X Links
Performance |
| Timeline |
| SPDR Gold Shares |
| Credit Suisse X |
SPDR Gold and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Credit Suisse
The main advantage of trading using opposite SPDR Gold and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's 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 |
| Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Credit Suisse X Links | Credit Suisse vs. Global X Russell | Credit Suisse vs. RiverNorthDoubleLine Strategic Opportunity |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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