Correlation Between Barclays Capital and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both Barclays Capital and SPDR 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 Barclays Capital and SPDR Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays Capital and SPDR Gold Shares, you can compare the effects of market volatilities on Barclays Capital and SPDR 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 Barclays Capital with a short position of SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays Capital and SPDR Gold.
Diversification Opportunities for Barclays Capital and SPDR Gold
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barclays and SPDR is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Barclays Capital and SPDR Gold Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Shares and Barclays Capital 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 Barclays Capital are associated (or correlated) with SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Shares has no effect on the direction of Barclays Capital i.e., Barclays Capital and SPDR Gold go up and down completely randomly.
Pair Corralation between Barclays Capital and SPDR Gold
If you would invest 24,109 in SPDR Gold Shares on September 18, 2024 and sell it today you would earn a total of 285.00 from holding SPDR Gold Shares or generate 1.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Barclays Capital vs. SPDR Gold Shares
Performance |
Timeline |
Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Gold Shares |
Barclays Capital and SPDR Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barclays Capital and SPDR Gold
The main advantage of trading using opposite Barclays Capital and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays Capital position performs unexpectedly, SPDR 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 SPDR Gold will offset losses from the drop in SPDR Gold's long position.Barclays Capital vs. SPDR Gold Shares | Barclays Capital vs. SPDR Gold MiniShares | Barclays Capital vs. Invesco DB Agriculture | Barclays Capital vs. iShares Gold Trust |
SPDR Gold vs. iShares Silver Trust | SPDR Gold vs. VanEck Gold Miners | SPDR Gold vs. SPDR SP 500 | SPDR Gold vs. United States Oil |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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