Correlation Between USCF Gold and Global X
Can any of the company-specific risk be diversified away by investing in both USCF Gold and Global X 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 Global X 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 Global X Renewable, you can compare the effects of market volatilities on USCF Gold and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF Gold and Global X.
Diversification Opportunities for USCF Gold and Global X
Pay attention - limited upside
The 3 months correlation between USCF and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding USCF Gold Strategy and Global X Renewable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Renewable 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Renewable has no effect on the direction of USCF Gold i.e., USCF Gold and Global X go up and down completely randomly.
Pair Corralation between USCF Gold and Global X
If you would invest (100.00) in USCF Gold Strategy on November 18, 2024 and sell it today you would earn a total of 100.00 from holding USCF Gold Strategy or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
USCF Gold Strategy vs. Global X Renewable
Performance |
| Timeline |
| USCF Gold Strategy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Global X Renewable |
USCF Gold and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF Gold and Global X
The main advantage of trading using opposite USCF Gold and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF Gold position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X'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 |
| Global X vs. Global X CleanTech | Global X vs. Global X Clean | Global X vs. Global X Wind | Global X vs. Global X Thematic |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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