Correlation Between The Gold and Gateway Fund
Can any of the company-specific risk be diversified away by investing in both The Gold and Gateway Fund 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 The Gold and Gateway Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gold Bullion and Gateway Fund Class, you can compare the effects of market volatilities on The Gold and Gateway Fund 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 The Gold with a short position of Gateway Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gold and Gateway Fund.
Diversification Opportunities for The Gold and Gateway Fund
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between THE and Gateway is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding The Gold Bullion and Gateway Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Fund Class and The 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 The Gold Bullion are associated (or correlated) with Gateway Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Fund Class has no effect on the direction of The Gold i.e., The Gold and Gateway Fund go up and down completely randomly.
Pair Corralation between The Gold and Gateway Fund
Assuming the 90 days horizon The Gold Bullion is expected to generate 3.31 times more return on investment than Gateway Fund. However, The Gold is 3.31 times more volatile than Gateway Fund Class. It trades about 0.2 of its potential returns per unit of risk. Gateway Fund Class is currently generating about 0.11 per unit of risk. If you would invest 2,520 in The Gold Bullion on August 28, 2025 and sell it today you would earn a total of 491.00 from holding The Gold Bullion or generate 19.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gold Bullion vs. Gateway Fund Class
Performance |
| Timeline |
| Gold Bullion |
| Gateway Fund Class |
The Gold and Gateway Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gold and Gateway Fund
The main advantage of trading using opposite The Gold and Gateway Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gold position performs unexpectedly, Gateway Fund 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 Gateway Fund will offset losses from the drop in Gateway Fund's long position.| The Gold vs. Financial Industries Fund | The Gold vs. Davis Financial Fund | The Gold vs. Goldman Sachs Financial | The Gold vs. Putnam Global Financials |
| Gateway Fund vs. Guidemark Large Cap | Gateway Fund vs. Sterling Capital Behavioral | Gateway Fund vs. Nuveen Large Cap | Gateway Fund vs. Qs Large Cap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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