Correlation Between SPDR Gold and Rothschild
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Rothschild 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 SPDR Gold and Rothschild into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Gold Shares and Rothschild Co SCA, you can compare the effects of market volatilities on SPDR Gold and Rothschild 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 SPDR Gold with a short position of Rothschild. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Rothschild.
Diversification Opportunities for SPDR Gold and Rothschild
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and Rothschild is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and Rothschild Co SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rothschild Co SCA and SPDR 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 SPDR Gold Shares are associated (or correlated) with Rothschild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rothschild Co SCA has no effect on the direction of SPDR Gold i.e., SPDR Gold and Rothschild go up and down completely randomly.
Pair Corralation between SPDR Gold and Rothschild
If you would invest 20,218 in SPDR Gold Shares on January 20, 2024 and sell it today you would earn a total of 1,816 from holding SPDR Gold Shares or generate 8.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.35% |
Values | Daily Returns |
SPDR Gold Shares vs. Rothschild Co SCA
Performance |
Timeline |
SPDR Gold Shares |
Rothschild Co SCA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Gold and Rothschild Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Gold and Rothschild
The main advantage of trading using opposite SPDR Gold and Rothschild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Rothschild 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 Rothschild will offset losses from the drop in Rothschild's long position.SPDR Gold vs. iShares Silver Trust | SPDR Gold vs. VanEck Gold Miners | SPDR Gold vs. SPDR SP 500 | SPDR Gold vs. United States Oil |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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