Correlation Between SPDR Gold and Abrdn Physical
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Abrdn Physical 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 Abrdn Physical 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 abrdn Physical Gold, you can compare the effects of market volatilities on SPDR Gold and Abrdn Physical 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 Abrdn Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Abrdn Physical.
Diversification Opportunities for SPDR Gold and Abrdn Physical
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and Abrdn is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Shares and abrdn Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Physical Gold 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 Abrdn Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Physical Gold has no effect on the direction of SPDR Gold i.e., SPDR Gold and Abrdn Physical go up and down completely randomly.
Pair Corralation between SPDR Gold and Abrdn Physical
Considering the 90-day investment horizon SPDR Gold is expected to generate 1.01 times less return on investment than Abrdn Physical. In addition to that, SPDR Gold is 1.01 times more volatile than abrdn Physical Gold. It trades about 0.15 of its total potential returns per unit of risk. abrdn Physical Gold is currently generating about 0.15 per unit of volatility. If you would invest 2,752 in abrdn Physical Gold on March 10, 2025 and sell it today you would earn a total of 408.00 from holding abrdn Physical Gold or generate 14.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Gold Shares vs. abrdn Physical Gold
Performance |
| Timeline |
| SPDR Gold Shares |
| abrdn Physical Gold |
SPDR Gold and Abrdn Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Abrdn Physical
The main advantage of trading using opposite SPDR Gold and Abrdn Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Abrdn Physical 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 Abrdn Physical will offset losses from the drop in Abrdn Physical'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 |
| Abrdn Physical vs. abrdn Physical Silver | Abrdn Physical vs. GraniteShares Gold Trust | Abrdn Physical vs. SPDR Gold Mini | Abrdn Physical vs. abrdn Physical Platinum |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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