Correlation Between SPDR Gold and Vanguard Total
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Vanguard Total 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 Vanguard Total 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 Vanguard Total Stock, you can compare the effects of market volatilities on SPDR Gold and Vanguard Total 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 Vanguard Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Vanguard Total.
Diversification Opportunities for SPDR Gold and Vanguard Total
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between SPDR and Vanguard is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Vanguard Total Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Stock 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 Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Stock has no effect on the direction of SPDR Gold i.e., SPDR Gold and Vanguard Total go up and down completely randomly.
Pair Corralation between SPDR Gold and Vanguard Total
Considering the 90-day investment horizon SPDR Gold is expected to generate 2.68 times less return on investment than Vanguard Total. In addition to that, SPDR Gold is 1.2 times more volatile than Vanguard Total Stock. It trades about 0.04 of its total potential returns per unit of risk. Vanguard Total Stock is currently generating about 0.13 per unit of volatility. If you would invest 28,132 in Vanguard Total Stock on November 1, 2024 and sell it today you would earn a total of 1,892 from holding Vanguard Total Stock or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Gold Shares vs. Vanguard Total Stock
Performance |
| Timeline |
| SPDR Gold Shares |
| Vanguard Total Stock |
SPDR Gold and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Vanguard Total
The main advantage of trading using opposite SPDR Gold and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Vanguard Total 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 Vanguard Total will offset losses from the drop in Vanguard Total's long position.| SPDR Gold vs. iShares Silver Trust | SPDR Gold vs. VanEck Gold Miners | SPDR Gold vs. SPDR SP 500 | SPDR Gold vs. Energy Select Sector |
| Vanguard Total vs. Vanguard SP 500 | Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Real Estate | Vanguard Total vs. Vanguard Total Bond |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |