Correlation Between Abrdn Physical and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Abrdn Physical and SPDR SP 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 Abrdn Physical and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Physical Gold and SPDR SP Global, you can compare the effects of market volatilities on Abrdn Physical and SPDR SP 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 Abrdn Physical with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Physical and SPDR SP.
Diversification Opportunities for Abrdn Physical and SPDR SP
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Abrdn and SPDR is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Gold and SPDR SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Global and Abrdn Physical 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 abrdn Physical Gold are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Global has no effect on the direction of Abrdn Physical i.e., Abrdn Physical and SPDR SP go up and down completely randomly.
Pair Corralation between Abrdn Physical and SPDR SP
Given the investment horizon of 90 days abrdn Physical Gold is expected to generate 0.85 times more return on investment than SPDR SP. However, abrdn Physical Gold is 1.18 times less risky than SPDR SP. It trades about 0.09 of its potential returns per unit of risk. SPDR SP Global is currently generating about 0.01 per unit of risk. If you would invest 1,713 in abrdn Physical Gold on August 28, 2024 and sell it today you would earn a total of 794.00 from holding abrdn Physical Gold or generate 46.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
abrdn Physical Gold vs. SPDR SP Global
Performance |
| Timeline |
| abrdn Physical Gold |
| SPDR SP Global |
Abrdn Physical and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Physical and SPDR SP
The main advantage of trading using opposite Abrdn Physical and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Physical position performs unexpectedly, SPDR SP 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 SP will offset losses from the drop in SPDR SP's long position.| Abrdn Physical vs. abrdn Physical Silver | Abrdn Physical vs. GraniteShares Gold Trust | Abrdn Physical vs. SPDR Gold MiniShares | Abrdn Physical vs. abrdn Physical Platinum |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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