Correlation Between IShares Physical and Centerra Gold
Can any of the company-specific risk be diversified away by investing in both IShares Physical and Centerra Gold 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 Physical and Centerra Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Metals and Centerra Gold, you can compare the effects of market volatilities on IShares Physical and Centerra Gold 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 Physical with a short position of Centerra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and Centerra Gold.
Diversification Opportunities for IShares Physical and Centerra Gold
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Centerra is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Metals and Centerra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerra Gold and IShares Physical 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 Physical Metals are associated (or correlated) with Centerra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerra Gold has no effect on the direction of IShares Physical i.e., IShares Physical and Centerra Gold go up and down completely randomly.
Pair Corralation between IShares Physical and Centerra Gold
Assuming the 90 days horizon IShares Physical is expected to generate 3.02 times less return on investment than Centerra Gold. But when comparing it to its historical volatility, iShares Physical Metals is 2.21 times less risky than Centerra Gold. It trades about 0.2 of its potential returns per unit of risk. Centerra Gold is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 828.00 in Centerra Gold on September 4, 2025 and sell it today you would earn a total of 500.00 from holding Centerra Gold or generate 60.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Physical Metals vs. Centerra Gold
Performance |
| Timeline |
| iShares Physical Metals |
| Centerra Gold |
IShares Physical and Centerra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Physical and Centerra Gold
The main advantage of trading using opposite IShares Physical and Centerra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical position performs unexpectedly, Centerra Gold 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 Centerra Gold will offset losses from the drop in Centerra Gold's long position.| IShares Physical vs. NVIDIA | IShares Physical vs. Apple Inc | IShares Physical vs. Alphabet Inc Class C | IShares Physical vs. Microsoft |
| Centerra Gold vs. Seneca Foods | Centerra Gold vs. BG Foods | Centerra Gold vs. Dream Office Real | Centerra Gold vs. Where Food Comes |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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