Correlation Between SPDR Gold and Global X
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By analyzing existing cross correlation between SPDR Gold Shares and Global X SP, you can compare the effects of market volatilities on SPDR Gold and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Global X.
Diversification Opportunities for SPDR Gold and Global X
Pay attention - limited upside
The 3 months correlation between SPDR and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Global X SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SP 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X SP has no effect on the direction of SPDR Gold i.e., SPDR Gold and Global X go up and down completely randomly.
Pair Corralation between SPDR Gold and Global X
If you would invest 16,535 in SPDR Gold Shares on September 12, 2024 and sell it today you would earn a total of 6,991 from holding SPDR Gold Shares or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR Gold Shares vs. Global X SP
Performance |
| Timeline |
| SPDR Gold Shares |
| Global X SP |
SPDR Gold and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Global X
The main advantage of trading using opposite SPDR Gold and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| SPDR Gold vs. UBS Fund Solutions | SPDR Gold vs. Xtrackers II | SPDR Gold vs. Xtrackers Nikkei 225 | SPDR Gold 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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