Correlation Between Europac Gold and Global Gold
Can any of the company-specific risk be diversified away by investing in both Europac Gold and Global 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 Europac Gold and Global Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Global Gold Fund, you can compare the effects of market volatilities on Europac Gold and Global 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 Europac Gold with a short position of Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Global Gold.
Diversification Opportunities for Europac Gold and Global Gold
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Europac and Global is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund and Europac 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 Europac Gold Fund are associated (or correlated) with Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Europac Gold i.e., Europac Gold and Global Gold go up and down completely randomly.
Pair Corralation between Europac Gold and Global Gold
Assuming the 90 days horizon Europac Gold is expected to generate 1.32 times less return on investment than Global Gold. But when comparing it to its historical volatility, Europac Gold Fund is 1.12 times less risky than Global Gold. It trades about 0.18 of its potential returns per unit of risk. Global Gold Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,015 in Global Gold Fund on August 19, 2025 and sell it today you would earn a total of 723.00 from holding Global Gold Fund or generate 35.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Global Gold Fund
Performance |
| Timeline |
| Europac Gold |
| Global Gold Fund |
Europac Gold and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Global Gold
The main advantage of trading using opposite Europac Gold and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold position performs unexpectedly, Global 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 Global Gold will offset losses from the drop in Global Gold's long position.| Europac Gold vs. Cboe Vest Sp | Europac Gold vs. Cboe Vest Sp | Europac Gold vs. Deutsche Large Cap | Europac Gold vs. Calamos Evolving World |
| Global Gold vs. Sprott Gold Equity | Global Gold vs. Global Real Estate | Global Gold vs. Dreyfus Institutional Sp | Global Gold vs. Putnam Global Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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