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Over the last couple weeks the $SPY has had a strong rally. Gold stocks on the other hand have largely done the opposite. Does this present an opportunity?

With such a strong rally in the $SPY recently, we decided to look into how general equities are performing in relation to gold stocks. To do this we ran a scan for 10 of the highest correlated stocks to the $SPY (S&P500 ETF) and 10 of the highest correlated stocks to the $GDX (Gold Miners ETF). We then created a 1 month correlation cluster chart containing those stocks.

As can be seen in the below correlation cluster chart, there are two distinct clusters around the $GDX and $SPY ETF's. This presents a good opportunity to lower your overall portfolio correlation and increase diversification.

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