If you're using gold to hedge your portfolio, you have a problem.
The yellow metal is frequently lauded for its ability to offset stock market moves — rising when stocks fall, and falling when they rise.
That is precisely what investors have seen over the past 60 sessions; gold and the S&P have experienced a correlation of negative 0.24, which indicates a relatively strong negative relationship. And the precious metal has risen about 1.5 percent in 2 of the 3 most recent sessions in which the S&P fell 2 percent or more.
But this doesn't mean that gold will rise every time your stock holdings fall. Examining the relationship over the past several years, one finds that gold and the S&P are a most volatile couple — occasionally moving nearly in lockstep, sometimes running away from each other and frequently displaying indifference.