Correlation Between SPDR Gold and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Amundi ETF 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 Amundi ETF 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 Amundi ETF MSCI, you can compare the effects of market volatilities on SPDR Gold and Amundi ETF 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 Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Amundi ETF.
Diversification Opportunities for SPDR Gold and Amundi ETF
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and Amundi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI 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 Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF MSCI has no effect on the direction of SPDR Gold i.e., SPDR Gold and Amundi ETF go up and down completely randomly.
Pair Corralation between SPDR Gold and Amundi ETF
Assuming the 90 days trading horizon SPDR Gold Shares is expected to generate 1.15 times more return on investment than Amundi ETF. However, SPDR Gold is 1.15 times more volatile than Amundi ETF MSCI. It trades about 0.12 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about 0.05 per unit of risk. If you would invest 15,864 in SPDR Gold Shares on November 19, 2024 and sell it today you would earn a total of 9,812 from holding SPDR Gold Shares or generate 61.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
SPDR Gold Shares vs. Amundi ETF MSCI
Performance |
| Timeline |
| SPDR Gold Shares |
| Amundi ETF MSCI |
SPDR Gold and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Amundi ETF
The main advantage of trading using opposite SPDR Gold and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Amundi ETF 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| SPDR Gold vs. SPDR Barclays 10 | SPDR Gold vs. SPDR ICE BofA | SPDR Gold vs. SPDR SP Utilities | SPDR Gold vs. SPDR ICE BofA |
| Amundi ETF vs. UBS Fund Solutions | Amundi ETF vs. Xtrackers II | Amundi ETF vs. Xtrackers Nikkei 225 | Amundi ETF vs. iShares VII PLC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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