Correlation Between IShares Gold and Abrdn ETFs
Can any of the company-specific risk be diversified away by investing in both IShares Gold and Abrdn ETFs 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 IShares Gold and Abrdn ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Gold Trust and abrdn ETFs , you can compare the effects of market volatilities on IShares Gold and Abrdn ETFs 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 IShares Gold with a short position of Abrdn ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Gold and Abrdn ETFs.
Diversification Opportunities for IShares Gold and Abrdn ETFs
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Abrdn is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding iShares Gold Trust and abrdn ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn ETFs and IShares 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 iShares Gold Trust are associated (or correlated) with Abrdn ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn ETFs has no effect on the direction of IShares Gold i.e., IShares Gold and Abrdn ETFs go up and down completely randomly.
Pair Corralation between IShares Gold and Abrdn ETFs
Given the investment horizon of 90 days iShares Gold Trust is expected to generate 0.82 times more return on investment than Abrdn ETFs. However, iShares Gold Trust is 1.22 times less risky than Abrdn ETFs. It trades about 0.1 of its potential returns per unit of risk. abrdn ETFs is currently generating about -0.04 per unit of risk. If you would invest 2,342 in iShares Gold Trust on September 1, 2024 and sell it today you would earn a total of 313.00 from holding iShares Gold Trust or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
iShares Gold Trust vs. abrdn ETFs
Performance |
| Timeline |
| iShares Gold Trust |
| abrdn ETFs |
IShares Gold and Abrdn ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Gold and Abrdn ETFs
The main advantage of trading using opposite IShares Gold and Abrdn ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Gold position performs unexpectedly, Abrdn ETFs 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 Abrdn ETFs will offset losses from the drop in Abrdn ETFs' long position.| IShares Gold vs. SPDR Gold MiniShares | IShares Gold vs. Goldman Sachs Physical | IShares Gold vs. GraniteShares Gold Trust | IShares Gold vs. VanEck Merk Gold |
| Abrdn ETFs vs. Goldman Sachs Physical | Abrdn ETFs vs. iShares Gold Trust | Abrdn ETFs vs. iShares Bloomberg Roll |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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