Metal Price Correlation Matrix
Understand how precious metals move together. Discover relationships, diversification opportunities, and market dynamics through data-driven correlation analysis.
Correlation Matrix
Based on 18 daily price points
| Metal | Gold | Silver | Platinum | Palladium | Copper |
|---|---|---|---|---|---|
| Gold | 1.00 | +0.87Very Strong Positive | +0.91Very Strong Positive | +0.91Very Strong Positive | +0.27Weak Positive |
| Silver | +0.87Very Strong Positive | 1.00 | +0.96Very Strong Positive | +0.95Very Strong Positive | +0.22Weak Positive |
| Platinum | +0.91Very Strong Positive | +0.96Very Strong Positive | 1.00 | +0.98Very Strong Positive | +0.15Weak Positive |
| Palladium | +0.91Very Strong Positive | +0.95Very Strong Positive | +0.98Very Strong Positive | 1.00 | +0.08No Correlation |
| Copper | +0.27Weak Positive | +0.22Weak Positive | +0.15Weak Positive | +0.08No Correlation | 1.00 |
Coefficients run from −1.00 to +1.00. The sign shows direction; the bar shows strength.
What is Correlation?
Correlation measures how two assets move in relation to each other. The correlation coefficient ranges from -1.0 to +1.0:
- +1.0 Perfect Positive Correlation: Assets move in exactly the same direction
- 0.0 No Correlation: Assets move independently
- -1.0 Perfect Negative Correlation: Assets move in opposite directions
What Does This Mean for Investors?
Diversification Strategy
Metals with low or negative correlation provide better portfolio diversification. If gold and copper have low correlation, holding both reduces overall risk.
Market Insights
High correlation between metals like platinum and palladium (both used in automotive catalysts) reveals shared market drivers and industrial demand patterns.
Risk Management
Understanding correlations helps predict how your portfolio might behave during market stress. Metals with high correlation will likely fall or rise together.
Key Correlation Insights
Gold & Silver
Typically show strong positive correlation (0.7-0.9) as both are monetary metals and safe-haven assets during economic uncertainty.
Platinum & Palladium
Often highly correlated due to shared industrial uses (automotive catalytic converters), though palladium can diverge during supply shocks.
Gold & Copper
Usually show lower correlation. Copper is industrial (economic growth indicator) while gold is monetary (safe haven), creating different demand drivers.
Want to Track Individual Metals?
Explore detailed price charts, historical data, and market analysis for each metal.