Correlation Between IShares Gold and SPDR Bridgewater
Can any of the company-specific risk be diversified away by investing in both IShares Gold and SPDR Bridgewater 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 IShares Gold and SPDR Bridgewater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Gold Trust and SPDR Bridgewater All, you can compare the effects of market volatilities on IShares Gold and SPDR Bridgewater 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 IShares Gold with a short position of SPDR Bridgewater. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Gold and SPDR Bridgewater.
Diversification Opportunities for IShares Gold and SPDR Bridgewater
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and SPDR is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding iShares Gold Trust and SPDR Bridgewater All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bridgewater All and IShares 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 iShares Gold Trust are associated (or correlated) with SPDR Bridgewater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bridgewater All has no effect on the direction of IShares Gold i.e., IShares Gold and SPDR Bridgewater go up and down completely randomly.
Pair Corralation between IShares Gold and SPDR Bridgewater
Given the investment horizon of 90 days iShares Gold Trust is expected to generate 1.85 times more return on investment than SPDR Bridgewater. However, IShares Gold is 1.85 times more volatile than SPDR Bridgewater All. It trades about 0.39 of its potential returns per unit of risk. SPDR Bridgewater All is currently generating about 0.27 per unit of risk. If you would invest 3,339 in iShares Gold Trust on July 18, 2025 and sell it today you would earn a total of 859.00 from holding iShares Gold Trust or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Gold Trust vs. SPDR Bridgewater All
Performance |
| Timeline |
| iShares Gold Trust |
| SPDR Bridgewater All |
IShares Gold and SPDR Bridgewater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Gold and SPDR Bridgewater
The main advantage of trading using opposite IShares Gold and SPDR Bridgewater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Gold position performs unexpectedly, SPDR Bridgewater 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 SPDR Bridgewater will offset losses from the drop in SPDR Bridgewater's long position.| IShares Gold vs. Goldman Sachs Physical | IShares Gold vs. GraniteShares Gold Trust | IShares Gold vs. SPDR Gold Mini | IShares Gold vs. VanEck Merk Gold |
| SPDR Bridgewater vs. Amplify High Income | SPDR Bridgewater vs. Cabana Target Drawdown | SPDR Bridgewater vs. Cambria Global Momentum | SPDR Bridgewater vs. Adaptive Alpha Opportunities |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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