Correlation Between SPDR Gold and Expat Serbia
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Expat Serbia 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 Serbia 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 Serbia Belex15, you can compare the effects of market volatilities on SPDR Gold and Expat Serbia 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 Serbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Expat Serbia.
Diversification Opportunities for SPDR Gold and Expat Serbia
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPDR and Expat is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Expat Serbia Belex15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Serbia Belex15 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 Serbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Serbia Belex15 has no effect on the direction of SPDR Gold i.e., SPDR Gold and Expat Serbia go up and down completely randomly.
Pair Corralation between SPDR Gold and Expat Serbia
Assuming the 90 days trading horizon SPDR Gold Shares is expected to generate 0.64 times more return on investment than Expat Serbia. However, SPDR Gold Shares is 1.57 times less risky than Expat Serbia. It trades about 0.01 of its potential returns per unit of risk. Expat Serbia Belex15 is currently generating about -0.1 per unit of risk. If you would invest 23,125 in SPDR Gold Shares on September 5, 2024 and sell it today you would earn a total of 8.00 from holding SPDR Gold Shares or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPDR Gold Shares vs. Expat Serbia Belex15
Performance |
| Timeline |
| SPDR Gold Shares |
| Expat Serbia Belex15 |
SPDR Gold and Expat Serbia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Expat Serbia
The main advantage of trading using opposite SPDR Gold and Expat Serbia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Expat Serbia 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 Serbia will offset losses from the drop in Expat Serbia'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 Serbia vs. UBS Fund Solutions | Expat Serbia vs. Xtrackers II | Expat Serbia vs. Xtrackers Nikkei 225 | Expat Serbia 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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