Correlation Between USCF Gold and IShares Utilities
Can any of the company-specific risk be diversified away by investing in both USCF Gold and IShares Utilities 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 IShares Utilities 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 iShares Utilities ETF, you can compare the effects of market volatilities on USCF Gold and IShares Utilities 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 IShares Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF Gold and IShares Utilities.
Diversification Opportunities for USCF Gold and IShares Utilities
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USCF and IShares is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding USCF Gold Strategy and iShares Utilities ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Utilities ETF 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 IShares Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Utilities ETF has no effect on the direction of USCF Gold i.e., USCF Gold and IShares Utilities go up and down completely randomly.
Pair Corralation between USCF Gold and IShares Utilities
If you would invest 10,378 in iShares Utilities ETF on August 24, 2024 and sell it today you would earn a total of 25.00 from holding iShares Utilities ETF or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
USCF Gold Strategy vs. iShares Utilities ETF
Performance |
| Timeline |
| USCF Gold Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| iShares Utilities ETF |
USCF Gold and IShares Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF Gold and IShares Utilities
The main advantage of trading using opposite USCF Gold and IShares Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF Gold position performs unexpectedly, IShares Utilities 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 IShares Utilities will offset losses from the drop in IShares Utilities' 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 |
| IShares Utilities vs. iShares Industrials ETF | IShares Utilities vs. iShares Consumer Discretionary | IShares Utilities vs. iShares Consumer Staples | IShares Utilities vs. iShares Telecommunications ETF |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |