Correlation Between BetaPro Gold and Purpose Tactical

Can any of the company-specific risk be diversified away by investing in both BetaPro Gold and Purpose Tactical 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 Purpose Tactical 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 Purpose Tactical Hedged, you can compare the effects of market volatilities on BetaPro Gold and Purpose Tactical 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 Purpose Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Gold and Purpose Tactical.

Diversification Opportunities for BetaPro Gold and Purpose Tactical

-0.26

Correlation Coefficient

BetaPro Gold  Purpose Tactical

Very good diversification

The 3 months correlation between BetaPro and Purpose is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Gold Bullion and Purpose Tactical Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Purpose Tactical Hedged 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 Purpose Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Purpose Tactical Hedged has no effect on the direction of BetaPro Gold i.e., BetaPro Gold and Purpose Tactical go up and down completely randomly.

Pair Corralation between BetaPro Gold and Purpose Tactical

Assuming the 90 days trading horizon BetaPro Gold Bullion is expected to under-perform the Purpose Tactical. In addition to that, BetaPro Gold is 5.24 times more volatile than Purpose Tactical Hedged. It trades about -0.04 of its total potential returns per unit of risk. Purpose Tactical Hedged is currently generating about 0.36 per unit of volatility. If you would invest  3,360  in Purpose Tactical Hedged on April 21, 2025 and sell it today you would earn a total of  417.00  from holding Purpose Tactical Hedged or generate 12.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

BetaPro Gold Bullion  vs.  Purpose Tactical Hedged

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 latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Purpose Tactical Hedged

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Purpose Tactical Hedged are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Purpose Tactical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BetaPro Gold and Purpose Tactical

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

The idea behind BetaPro Gold Bullion and Purpose Tactical Hedged 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.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.