Correlation Between BetaPro Gold and BetaPro Gold

Can any of the company-specific risk be diversified away by investing in both BetaPro Gold and BetaPro 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 BetaPro Gold and BetaPro Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BetaPro Gold Bullion and BetaPro Gold Bullion, you can compare the effects of market volatilities on BetaPro Gold and BetaPro 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 BetaPro Gold with a short position of BetaPro Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Gold and BetaPro Gold.

Diversification Opportunities for BetaPro Gold and BetaPro Gold

-0.84

Correlation Coefficient

BetaPro Gold  BetaPro Gold

Pay attention - limited upside

The 3 months correlation between BetaPro and BetaPro is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Gold Bullion and BetaPro Gold Bullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro Gold Bullion and BetaPro 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 BetaPro Gold Bullion are associated (or correlated) with BetaPro Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro Gold Bullion has no effect on the direction of BetaPro Gold i.e., BetaPro Gold and BetaPro Gold go up and down completely randomly.

Pair Corralation between BetaPro Gold and BetaPro Gold

Assuming the 90 days trading horizon BetaPro Gold Bullion is expected to under-perform the BetaPro Gold. But the etf apears to be less risky and, when comparing its historical volatility, BetaPro Gold Bullion is 1.02 times less risky than BetaPro Gold. The etf trades about -0.01 of its potential returns per unit of risk. The BetaPro Gold Bullion is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,497  in BetaPro Gold Bullion on April 23, 2025 and sell it today you would lose (9.00) from holding BetaPro Gold Bullion or give up 0.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

BetaPro Gold Bullion  vs.  BetaPro Gold Bullion

BetaPro Gold Bullion

Risk-Adjusted Performance

Very Weak

Over the last 90 days BetaPro Gold Bullion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, BetaPro Gold is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

BetaPro Gold Bullion

Risk-Adjusted Performance

Very Weak

Over the last 90 days BetaPro Gold Bullion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, BetaPro Gold is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with BetaPro Gold and BetaPro Gold

The main advantage of trading using opposite BetaPro Gold and BetaPro Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Gold position performs unexpectedly, BetaPro 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 BetaPro Gold will offset losses from the drop in BetaPro Gold's long position.

The idea behind BetaPro Gold Bullion and BetaPro Gold Bullion pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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.