Correlation Between SPDR Gold and Xtrackers
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By analyzing existing cross correlation between SPDR Gold Shares and Xtrackers II Global, you can compare the effects of market volatilities on SPDR Gold and Xtrackers 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 Xtrackers. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Xtrackers.
Diversification Opportunities for SPDR Gold and Xtrackers
Pay attention - limited upside
The 3 months correlation between SPDR and Xtrackers is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Xtrackers II Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers II Global 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 Xtrackers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers II Global has no effect on the direction of SPDR Gold i.e., SPDR Gold and Xtrackers go up and down completely randomly.
Pair Corralation between SPDR Gold and Xtrackers
Assuming the 90 days trading horizon SPDR Gold Shares is expected to under-perform the Xtrackers. In addition to that, SPDR Gold is 4.8 times more volatile than Xtrackers II Global. It trades about -0.04 of its total potential returns per unit of risk. Xtrackers II Global is currently generating about 0.01 per unit of volatility. If you would invest 21,724 in Xtrackers II Global on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Xtrackers II Global or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
SPDR Gold Shares vs. Xtrackers II Global
Performance |
| Timeline |
| SPDR Gold Shares |
| Xtrackers II Global |
SPDR Gold and Xtrackers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Xtrackers
The main advantage of trading using opposite SPDR Gold and Xtrackers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Xtrackers 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 Xtrackers will offset losses from the drop in Xtrackers' 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 |
| Xtrackers vs. Xtrackers Nikkei 225 | Xtrackers vs. iShares VII PLC | Xtrackers vs. NMI Holdings | Xtrackers vs. SIVERS SEMICONDUCTORS AB |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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