Correlation Between GraniteShares Gold and Gold Portfolio
Can any of the company-specific risk be diversified away by investing in both GraniteShares Gold and Gold Portfolio 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 GraniteShares Gold and Gold Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares Gold Trust and Gold Portfolio Fidelity, you can compare the effects of market volatilities on GraniteShares Gold and Gold Portfolio 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 GraniteShares Gold with a short position of Gold Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Gold and Gold Portfolio.
Diversification Opportunities for GraniteShares Gold and Gold Portfolio
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GraniteShares and Gold is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Gold Trust and Gold Portfolio Fidelity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Portfolio Fidelity and GraniteShares 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 GraniteShares Gold Trust are associated (or correlated) with Gold Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Portfolio Fidelity has no effect on the direction of GraniteShares Gold i.e., GraniteShares Gold and Gold Portfolio go up and down completely randomly.
Pair Corralation between GraniteShares Gold and Gold Portfolio
Considering the 90-day investment horizon GraniteShares Gold is expected to generate 1.44 times less return on investment than Gold Portfolio. But when comparing it to its historical volatility, GraniteShares Gold Trust is 1.49 times less risky than Gold Portfolio. It trades about 0.28 of its potential returns per unit of risk. Gold Portfolio Fidelity is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,147 in Gold Portfolio Fidelity on January 25, 2024 and sell it today you would earn a total of 211.00 from holding Gold Portfolio Fidelity or generate 9.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GraniteShares Gold Trust vs. Gold Portfolio Fidelity
Performance |
Timeline |
GraniteShares Gold Trust |
Gold Portfolio Fidelity |
GraniteShares Gold and Gold Portfolio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GraniteShares Gold and Gold Portfolio
The main advantage of trading using opposite GraniteShares Gold and Gold Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Gold position performs unexpectedly, Gold Portfolio 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 Gold Portfolio will offset losses from the drop in Gold Portfolio's long position.GraniteShares Gold vs. HUMANA INC | GraniteShares Gold vs. Aquagold International | GraniteShares Gold vs. Barloworld Ltd ADR | GraniteShares Gold vs. Morningstar Unconstrained Allocation |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |