Correlation Between GraniteShares Gold and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both GraniteShares Gold 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 GraniteShares Gold and SPDR Gold 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 SPDR Gold Mini, you can compare the effects of market volatilities on GraniteShares Gold 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 GraniteShares Gold with a short position of SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Gold and SPDR Gold.
Diversification Opportunities for GraniteShares Gold and SPDR Gold
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GraniteShares and SPDR is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Gold Trust and SPDR Gold Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Mini 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 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 Mini has no effect on the direction of GraniteShares Gold i.e., GraniteShares Gold and SPDR Gold go up and down completely randomly.
Pair Corralation between GraniteShares Gold and SPDR Gold
Considering the 90-day investment horizon GraniteShares Gold Trust is expected to generate 1.0 times more return on investment than SPDR Gold. However, GraniteShares Gold is 1.0 times more volatile than SPDR Gold Mini. It trades about 0.15 of its potential returns per unit of risk. SPDR Gold Mini is currently generating about 0.15 per unit of risk. If you would invest 2,961 in GraniteShares Gold Trust on March 17, 2025 and sell it today you would earn a total of 426.00 from holding GraniteShares Gold Trust or generate 14.39% 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. SPDR Gold Mini
Performance |
| Timeline |
| GraniteShares Gold Trust |
| SPDR Gold Mini |
GraniteShares Gold and SPDR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Gold and SPDR Gold
The main advantage of trading using opposite GraniteShares Gold and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Gold 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.| GraniteShares Gold vs. SPDR Gold Mini | GraniteShares Gold vs. Goldman Sachs Physical | GraniteShares Gold vs. abrdn Physical Gold | GraniteShares Gold vs. VanEck Merk Gold |
| SPDR Gold vs. MicroSectors Gold 3X | SPDR Gold vs. Franklin Responsibly Sourced | SPDR Gold vs. GraniteShares Gold Trust | SPDR Gold vs. DB Gold Double |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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