Correlation Between USCF Gold and Arrow ETF
Can any of the company-specific risk be diversified away by investing in both USCF Gold and Arrow 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 USCF Gold and Arrow ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USCF Gold Strategy and Arrow ETF Trust, you can compare the effects of market volatilities on USCF Gold and Arrow 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 USCF Gold with a short position of Arrow ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF Gold and Arrow ETF.
Diversification Opportunities for USCF Gold and Arrow ETF
Very good diversification
The 3 months correlation between USCF and Arrow is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding USCF Gold Strategy and Arrow ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow ETF Trust and USCF Gold 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 USCF Gold Strategy are associated (or correlated) with Arrow ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow ETF Trust has no effect on the direction of USCF Gold i.e., USCF Gold and Arrow ETF go up and down completely randomly.
Pair Corralation between USCF Gold and Arrow ETF
Given the investment horizon of 90 days USCF Gold Strategy is expected to generate 1.52 times more return on investment than Arrow ETF. However, USCF Gold is 1.52 times more volatile than Arrow ETF Trust. It trades about 0.15 of its potential returns per unit of risk. Arrow ETF Trust is currently generating about 0.06 per unit of risk. If you would invest 2,731 in USCF Gold Strategy on August 29, 2024 and sell it today you would earn a total of 286.00 from holding USCF Gold Strategy or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.11% |
| Values | Daily Returns |
USCF Gold Strategy vs. Arrow ETF Trust
Performance |
| Timeline |
| USCF Gold Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Arrow ETF Trust |
USCF Gold and Arrow ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF Gold and Arrow ETF
The main advantage of trading using opposite USCF Gold and Arrow ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF Gold position performs unexpectedly, Arrow 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 Arrow ETF will offset losses from the drop in Arrow ETF's long position.| USCF Gold vs. iShares MSCI Global | USCF Gold vs. Global X Silver | USCF Gold vs. VanEck Junior Gold | USCF Gold vs. Sprott Gold Miners |
| Arrow ETF vs. iShares Morningstar Multi Asset | Arrow ETF vs. Amplify High Income | Arrow ETF vs. First Trust Multi Asset | Arrow ETF vs. SPDR SSgA Income |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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