Correlation Between SPDR Gold and Jpmorgan Strategic
Can any of the company-specific risk be diversified away by investing in both SPDR Gold and Jpmorgan Strategic 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 Jpmorgan Strategic 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 Jpmorgan Strategic Income, you can compare the effects of market volatilities on SPDR Gold and Jpmorgan Strategic 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 Jpmorgan Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Gold and Jpmorgan Strategic.
Diversification Opportunities for SPDR Gold and Jpmorgan Strategic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPDR and Jpmorgan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Gold Mini and Jpmorgan Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Strategic Income 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 Jpmorgan Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Strategic Income has no effect on the direction of SPDR Gold i.e., SPDR Gold and Jpmorgan Strategic go up and down completely randomly.
Pair Corralation between SPDR Gold and Jpmorgan Strategic
Given the investment horizon of 90 days SPDR Gold Mini is expected to generate 27.45 times more return on investment than Jpmorgan Strategic. However, SPDR Gold is 27.45 times more volatile than Jpmorgan Strategic Income. It trades about 0.03 of its potential returns per unit of risk. Jpmorgan Strategic Income is currently generating about 0.49 per unit of risk. If you would invest 6,572 in SPDR Gold Mini on April 21, 2025 and sell it today you would earn a total of 59.00 from holding SPDR Gold Mini or generate 0.9% 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. Jpmorgan Strategic Income
Performance |
| Timeline |
| SPDR Gold Mini |
| Jpmorgan Strategic Income |
SPDR Gold and Jpmorgan Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Gold and Jpmorgan Strategic
The main advantage of trading using opposite SPDR Gold and Jpmorgan Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Gold position performs unexpectedly, Jpmorgan Strategic 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 Jpmorgan Strategic will offset losses from the drop in Jpmorgan Strategic'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 |
| Jpmorgan Strategic vs. Enhanced Fixed Income | Jpmorgan Strategic vs. Gmo High Yield | Jpmorgan Strategic vs. Versatile Bond Portfolio | Jpmorgan Strategic vs. Artisan High Income |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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