Correlation Between SPDR Gold and Expat Croatia
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Expat Croatia 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 Expat Croatia 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 Expat Croatia Crobex, you can compare the effects of market volatilities on SPDR Gold and Expat Croatia 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 Expat Croatia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Expat Croatia.
Diversification Opportunities for SPDR Gold and Expat Croatia
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and Expat is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Expat Croatia Crobex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Croatia Crobex 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 Expat Croatia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Croatia Crobex has no effect on the direction of SPDR Gold i.e., SPDR Gold and Expat Croatia go up and down completely randomly.
Pair Corralation between SPDR Gold and Expat Croatia
Assuming the 90 days trading horizon SPDR Gold is expected to generate 7.59 times less return on investment than Expat Croatia. But when comparing it to its historical volatility, SPDR Gold Shares is 1.55 times less risky than Expat Croatia. It trades about 0.01 of its potential returns per unit of risk. Expat Croatia Crobex is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 98.00 in Expat Croatia Crobex on September 5, 2024 and sell it today you would earn a total of 1.00 from holding Expat Croatia Crobex or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPDR Gold Shares vs. Expat Croatia Crobex
Performance |
| Timeline |
| SPDR Gold Shares |
| Expat Croatia Crobex |
SPDR Gold and Expat Croatia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Expat Croatia
The main advantage of trading using opposite SPDR Gold and Expat Croatia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Expat Croatia 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 Expat Croatia will offset losses from the drop in Expat Croatia'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 |
| Expat Croatia vs. UBS Fund Solutions | Expat Croatia vs. Xtrackers II | Expat Croatia vs. Xtrackers Nikkei 225 | Expat Croatia vs. SPDR Gold Shares |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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