Correlation Between SPDR Gold and Calvert International
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Calvert International 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 International 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 International Responsible, you can compare the effects of market volatilities on SPDR Gold and Calvert International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Calvert International.
Diversification Opportunities for SPDR Gold and Calvert International
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPDR and Calvert is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Mini and Calvert International Responsi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of SPDR Gold i.e., SPDR Gold and Calvert International go up and down completely randomly.
Pair Corralation between SPDR Gold and Calvert International
Given the investment horizon of 90 days SPDR Gold Mini is expected to under-perform the Calvert International. In addition to that, SPDR Gold is 1.85 times more volatile than Calvert International Responsible. It trades about -0.02 of its total potential returns per unit of risk. Calvert International Responsible is currently generating about 0.31 per unit of volatility. If you would invest 3,066 in Calvert International Responsible on April 20, 2025 and sell it today you would earn a total of 433.00 from holding Calvert International Responsible or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Gold Mini vs. Calvert International Responsi
Performance |
| Timeline |
| SPDR Gold Mini |
| Calvert International |
SPDR Gold and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Calvert International
The main advantage of trading using opposite SPDR Gold and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Calvert International 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 International will offset losses from the drop in Calvert International's long position.| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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