Correlation Between Invesco Exchange and USCF ETF
Can any of the company-specific risk be diversified away by investing in both Invesco Exchange and USCF ETF at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Invesco Exchange and USCF ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Exchange Traded and USCF ETF Trust, you can compare the effects of market volatilities on Invesco Exchange and USCF ETF and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Invesco Exchange with a short position of USCF ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Exchange and USCF ETF.
Diversification Opportunities for Invesco Exchange and USCF ETF
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Invesco and USCF is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Exchange Traded and USCF ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF ETF Trust and Invesco Exchange is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Invesco Exchange Traded are associated (or correlated) with USCF ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF ETF Trust has no effect on the direction of Invesco Exchange i.e., Invesco Exchange and USCF ETF go up and down completely randomly.
Pair Corralation between Invesco Exchange and USCF ETF
Given the investment horizon of 90 days Invesco Exchange Traded is expected to generate 0.95 times more return on investment than USCF ETF. However, Invesco Exchange Traded is 1.05 times less risky than USCF ETF. It trades about 0.16 of its potential returns per unit of risk. USCF ETF Trust is currently generating about 0.07 per unit of risk. If you would invest 2,470 in Invesco Exchange Traded on August 30, 2024 and sell it today you would earn a total of 813.00 from holding Invesco Exchange Traded or generate 32.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 49.9% |
| Values | Daily Returns |
Invesco Exchange Traded vs. USCF ETF Trust
Performance |
| Timeline |
| Invesco Exchange Traded |
| USCF ETF Trust |
Invesco Exchange and USCF ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Exchange and USCF ETF
The main advantage of trading using opposite Invesco Exchange and USCF ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Exchange position performs unexpectedly, USCF ETF can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in USCF ETF will offset losses from the drop in USCF ETF's long position.| Invesco Exchange vs. Vanguard Mid Cap Value | Invesco Exchange vs. SPDR SP Dividend | Invesco Exchange vs. Pacer Cash Cows | Invesco Exchange vs. WisdomTree MidCap Dividend |
| USCF ETF vs. Freedom Day Dividend | USCF ETF vs. Franklin Templeton ETF | USCF ETF vs. iShares MSCI China | USCF ETF vs. Tidal Trust II |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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