Correlation Between SPDR Gold and Quaker Investment
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Quaker Investment 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 Quaker Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Gold MiniShares and Quaker Investment Trust, you can compare the effects of market volatilities on SPDR Gold and Quaker Investment 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 Quaker Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Quaker Investment.
Diversification Opportunities for SPDR Gold and Quaker Investment
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and Quaker is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold MiniShares and Quaker Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Investment Trust 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 MiniShares are associated (or correlated) with Quaker Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Investment Trust has no effect on the direction of SPDR Gold i.e., SPDR Gold and Quaker Investment go up and down completely randomly.
Pair Corralation between SPDR Gold and Quaker Investment
Given the investment horizon of 90 days SPDR Gold MiniShares is expected to under-perform the Quaker Investment. In addition to that, SPDR Gold is 2.83 times more volatile than Quaker Investment Trust. It trades about -0.15 of its total potential returns per unit of risk. Quaker Investment Trust is currently generating about 0.21 per unit of volatility. If you would invest 1,677 in Quaker Investment Trust on March 21, 2024 and sell it today you would earn a total of 32.00 from holding Quaker Investment Trust or generate 1.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SPDR Gold MiniShares vs. Quaker Investment Trust
Performance |
Timeline |
SPDR Gold MiniShares |
Quaker Investment Trust |
SPDR Gold and Quaker Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SPDR Gold and Quaker Investment
The main advantage of trading using opposite SPDR Gold and Quaker Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Quaker Investment 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 Quaker Investment will offset losses from the drop in Quaker Investment's long position.SPDR Gold vs. MicroSectors Gold 3X | SPDR Gold vs. Franklin Responsibly Sourced | SPDR Gold vs. ProShares Ultra Silver | SPDR Gold vs. GraniteShares Gold Trust |
Quaker Investment vs. iShares Agency Bond | Quaker Investment vs. iShares 1 3 Year | Quaker Investment vs. iShares International Treasury | Quaker Investment vs. HUMANA INC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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