Correlation Between USCF SummerHaven and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both USCF SummerHaven and Barclays Capital 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 SummerHaven and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USCF SummerHaven Dynamic and Barclays Capital, you can compare the effects of market volatilities on USCF SummerHaven and Barclays Capital 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 SummerHaven with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF SummerHaven and Barclays Capital.
Diversification Opportunities for USCF SummerHaven and Barclays Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USCF and Barclays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding USCF SummerHaven Dynamic and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and USCF SummerHaven 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 SummerHaven Dynamic are associated (or correlated) with Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of USCF SummerHaven i.e., USCF SummerHaven and Barclays Capital go up and down completely randomly.
Pair Corralation between USCF SummerHaven and Barclays Capital
If you would invest 1,938 in USCF SummerHaven Dynamic on August 30, 2024 and sell it today you would earn a total of 82.00 from holding USCF SummerHaven Dynamic or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
USCF SummerHaven Dynamic vs. Barclays Capital
Performance |
| Timeline |
| USCF SummerHaven Dynamic |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
USCF SummerHaven and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF SummerHaven and Barclays Capital
The main advantage of trading using opposite USCF SummerHaven and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF SummerHaven position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.| USCF SummerHaven vs. abrdn Bloomberg All | USCF SummerHaven vs. iShares Bloomberg Roll | USCF SummerHaven vs. abrdn Bloomberg All | USCF SummerHaven vs. iShares GSCI Commodity |
| Barclays Capital vs. First Trust Global | Barclays Capital vs. UBS AG London | Barclays Capital vs. abrdn Bloomberg All |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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