Gold Correlation Lab
Test whether gold and another market actually moved together. We calculate Pearson correlation on aligned daily percentage changes—not on two rising price levels.
Rolling correlation
+1 together · 0 no linear relationship · −1 opposite
Normalised performance
Both series rebased to 100 at the first aligned observation
Correlation is not causation
A positive coefficient means the two daily return series tended to move in the same direction during the selected window. A negative coefficient means they tended to move in opposite directions. It does not prove that one asset caused the other to change.
Relationships also vary by regime. Gold can behave differently during inflation shocks, liquidity stress, policy changes or geopolitical events. That is why the rolling chart is more informative than one coefficient calculated across an entire history.
Why use returns instead of prices?
Two assets can both rise over many years and appear strongly related even when their day-to-day movements have little connection. Calculating correlation on percentage changes reduces that misleading trend effect. Dates are aligned before calculation, so weekends and missing observations are excluded rather than filled with invented prices.