Correlation Between USCF Gold and USCF ETF
Can any of the company-specific risk be diversified away by investing in both USCF Gold and USCF 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 USCF 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 USCF ETF Trust, you can compare the effects of market volatilities on USCF Gold and USCF 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 USCF ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF Gold and USCF ETF.
Diversification Opportunities for USCF Gold and USCF ETF
Very weak diversification
The 3 months correlation between USCF and USCF is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding USCF Gold Strategy and USCF ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF 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 USCF ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF ETF Trust has no effect on the direction of USCF Gold i.e., USCF Gold and USCF ETF go up and down completely randomly.
Pair Corralation between USCF Gold and USCF ETF
Considering the 90-day investment horizon USCF Gold Strategy is expected to generate 1.02 times more return on investment than USCF ETF. However, USCF Gold is 1.02 times more volatile than USCF ETF Trust. It trades about 0.08 of its potential returns per unit of risk. USCF ETF Trust is currently generating about 0.07 per unit of risk. If you would invest 2,177 in USCF Gold Strategy on September 4, 2024 and sell it today you would earn a total of 787.00 from holding USCF Gold Strategy or generate 36.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
USCF Gold Strategy vs. USCF ETF Trust
Performance |
| Timeline |
| USCF Gold Strategy |
| USCF ETF Trust |
USCF Gold and USCF ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF Gold and USCF ETF
The main advantage of trading using opposite USCF Gold and USCF ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF Gold position performs unexpectedly, USCF 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 USCF ETF will offset losses from the drop in USCF ETF's long position.| USCF Gold vs. Schwab Dividend Equity | USCF Gold vs. Calamos ETF Trust | USCF Gold vs. iShares iBonds Dec | USCF Gold vs. Invesco Dynamic Large |
| USCF ETF vs. Franklin Templeton ETF | USCF ETF vs. Altrius Global Dividend | USCF ETF vs. Invesco Exchange Traded | USCF ETF vs. Franklin International Core |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |