Correlation Between SPDR Gold and Calvert Developed
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Calvert Developed 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 Calvert Developed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Gold Mini and Calvert Developed Market, you can compare the effects of market volatilities on SPDR Gold and Calvert Developed 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 Calvert Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Calvert Developed.
Diversification Opportunities for SPDR Gold and Calvert Developed
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and Calvert is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Mini and Calvert Developed Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Developed Market 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 Mini are associated (or correlated) with Calvert Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Developed Market has no effect on the direction of SPDR Gold i.e., SPDR Gold and Calvert Developed go up and down completely randomly.
Pair Corralation between SPDR Gold and Calvert Developed
Given the investment horizon of 90 days SPDR Gold is expected to generate 4.15 times less return on investment than Calvert Developed. In addition to that, SPDR Gold is 1.1 times more volatile than Calvert Developed Market. It trades about 0.02 of its total potential returns per unit of risk. Calvert Developed Market is currently generating about 0.08 per unit of volatility. If you would invest 3,451 in Calvert Developed Market on April 9, 2025 and sell it today you would earn a total of 39.00 from holding Calvert Developed Market or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Gold Mini vs. Calvert Developed Market
Performance |
| Timeline |
| SPDR Gold Mini |
| Calvert Developed Market |
SPDR Gold and Calvert Developed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Calvert Developed
The main advantage of trading using opposite SPDR Gold and Calvert Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Calvert Developed 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 Calvert Developed will offset losses from the drop in Calvert Developed'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 |
| Calvert Developed vs. Vanguard Small Cap Value | Calvert Developed vs. Queens Road Small | Calvert Developed vs. Mid Cap Profund Mid Cap | Calvert Developed vs. American Century Etf |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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