Correlation Between Franklin Responsibly and USCF Gold
Can any of the company-specific risk be diversified away by investing in both Franklin Responsibly and USCF Gold 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 Franklin Responsibly and USCF Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Responsibly Sourced and USCF Gold Strategy, you can compare the effects of market volatilities on Franklin Responsibly and USCF Gold 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 Franklin Responsibly with a short position of USCF Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Responsibly and USCF Gold.
Diversification Opportunities for Franklin Responsibly and USCF Gold
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Franklin and USCF is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Responsibly Sourced and USCF Gold Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF Gold Strategy and Franklin Responsibly 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 Franklin Responsibly Sourced are associated (or correlated) with USCF Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF Gold Strategy has no effect on the direction of Franklin Responsibly i.e., Franklin Responsibly and USCF Gold go up and down completely randomly.
Pair Corralation between Franklin Responsibly and USCF Gold
Given the investment horizon of 90 days Franklin Responsibly Sourced is expected to under-perform the USCF Gold. In addition to that, Franklin Responsibly is 1.07 times more volatile than USCF Gold Strategy. It trades about -0.12 of its total potential returns per unit of risk. USCF Gold Strategy is currently generating about -0.11 per unit of volatility. If you would invest 3,079 in USCF Gold Strategy on September 1, 2024 and sell it today you would lose (93.00) from holding USCF Gold Strategy or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Responsibly Sourced vs. USCF Gold Strategy
Performance |
| Timeline |
| Franklin Responsibly |
| USCF Gold Strategy |
Franklin Responsibly and USCF Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Responsibly and USCF Gold
The main advantage of trading using opposite Franklin Responsibly and USCF Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Responsibly position performs unexpectedly, USCF Gold 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 Gold will offset losses from the drop in USCF Gold's long position.| Franklin Responsibly vs. MicroSectors Gold 3X | Franklin Responsibly vs. ProShares Ultra Silver | Franklin Responsibly vs. GraniteShares Gold Trust | Franklin Responsibly vs. Invesco DB Precious |
| USCF Gold vs. VictoryShares Small Cap | USCF Gold vs. SPDR Gold Shares | USCF Gold vs. First Trust Equity | USCF Gold vs. SPDR Nuveen Municipal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |