Correlation Between VanEck Merk and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both VanEck Merk and SPDR Gold 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 VanEck Merk and SPDR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Merk Gold and SPDR Gold MiniShares, you can compare the effects of market volatilities on VanEck Merk and SPDR Gold 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 VanEck Merk with a short position of SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Merk and SPDR Gold.
Diversification Opportunities for VanEck Merk and SPDR Gold
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between VanEck and SPDR is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Merk Gold and SPDR Gold MiniShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold MiniShares and VanEck Merk 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 VanEck Merk Gold are associated (or correlated) with SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold MiniShares has no effect on the direction of VanEck Merk i.e., VanEck Merk and SPDR Gold go up and down completely randomly.
Pair Corralation between VanEck Merk and SPDR Gold
Given the investment horizon of 90 days VanEck Merk is expected to generate 1.0 times less return on investment than SPDR Gold. In addition to that, VanEck Merk is 1.0 times more volatile than SPDR Gold MiniShares. It trades about 0.12 of its total potential returns per unit of risk. SPDR Gold MiniShares is currently generating about 0.12 per unit of volatility. If you would invest 4,025 in SPDR Gold MiniShares on September 2, 2024 and sell it today you would earn a total of 1,245 from holding SPDR Gold MiniShares or generate 30.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Merk Gold vs. SPDR Gold MiniShares
Performance |
| Timeline |
| VanEck Merk Gold |
| SPDR Gold MiniShares |
VanEck Merk and SPDR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Merk and SPDR Gold
The main advantage of trading using opposite VanEck Merk and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Merk position performs unexpectedly, SPDR Gold 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 SPDR Gold will offset losses from the drop in SPDR Gold's long position.| VanEck Merk vs. GraniteShares Gold Trust | VanEck Merk vs. Goldman Sachs Physical | VanEck Merk vs. abrdn Physical Gold | VanEck Merk vs. Sprott Gold Miners |
| SPDR Gold vs. MicroSectors Gold 3X | SPDR Gold vs. Franklin Responsibly Sourced | SPDR Gold vs. ProShares Ultra Silver | SPDR Gold vs. GraniteShares Gold Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |