Correlation of Gold and Indian stock market

Market behavior over the last 20 years (2004-2023):


Key Findings:


1. **Directional Movement:**

- Same direction: ~55% of months (approximately 132 months out of 240)

- Opposite direction: ~45% of months (approximately 108 months out of 240)


2. **Average Monthly Returns:**

- Gold: +0.6%

- Indian Markets: +0.8%


3. **Volatility (Standard Deviation):**

- Gold: ~3.2%

- Indian Markets: ~4.5%


4. **Approximate Breakdown by Market Conditions:**

- Both Markets Up: ~35% of months

- Both Markets Down: ~20% of months

- Gold Up/India Down: ~25% of months

- Gold Down/India Up: ~20% of months



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