Correlation Between Abrdn Physical and GraniteShares Gold
Can any of the company-specific risk be diversified away by investing in both Abrdn Physical and GraniteShares 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 Abrdn Physical and GraniteShares Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between abrdn Physical Silver and GraniteShares Gold Trust, you can compare the effects of market volatilities on Abrdn Physical and GraniteShares 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 Abrdn Physical with a short position of GraniteShares Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Physical and GraniteShares Gold.
Diversification Opportunities for Abrdn Physical and GraniteShares Gold
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abrdn and GraniteShares is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding abrdn Physical Silver and GraniteShares Gold Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares Gold Trust 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 Silver are associated (or correlated) with GraniteShares Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares Gold Trust has no effect on the direction of Abrdn Physical i.e., Abrdn Physical and GraniteShares Gold go up and down completely randomly.
Pair Corralation between Abrdn Physical and GraniteShares Gold
Given the investment horizon of 90 days Abrdn Physical is expected to generate 2.24 times less return on investment than GraniteShares Gold. In addition to that, Abrdn Physical is 2.05 times more volatile than GraniteShares Gold Trust. It trades about 0.02 of its total potential returns per unit of risk. GraniteShares Gold Trust is currently generating about 0.11 per unit of volatility. If you would invest 2,300 in GraniteShares Gold Trust on September 2, 2024 and sell it today you would earn a total of 325.00 from holding GraniteShares Gold Trust or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
abrdn Physical Silver vs. GraniteShares Gold Trust
Performance |
| Timeline |
| abrdn Physical Silver |
| GraniteShares Gold Trust |
Abrdn Physical and GraniteShares Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Physical and GraniteShares Gold
The main advantage of trading using opposite Abrdn Physical and GraniteShares Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Physical position performs unexpectedly, GraniteShares 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 GraniteShares Gold will offset losses from the drop in GraniteShares Gold's long position.| Abrdn Physical vs. abrdn Physical Gold | Abrdn Physical vs. abrdn Physical Platinum | Abrdn Physical vs. abrdn Physical Palladium | Abrdn Physical vs. ProShares Ultra Silver |
| GraniteShares Gold vs. SPDR Gold MiniShares | GraniteShares Gold vs. Goldman Sachs Physical | GraniteShares Gold vs. abrdn Physical Gold | GraniteShares Gold vs. VanEck Merk Gold |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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