Correlation Between USCF ETF and IShares Dividend
Can any of the company-specific risk be diversified away by investing in both USCF ETF and IShares Dividend 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 ETF and IShares Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USCF ETF Trust and iShares Dividend and, you can compare the effects of market volatilities on USCF ETF and IShares Dividend 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 ETF with a short position of IShares Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF ETF and IShares Dividend.
Diversification Opportunities for USCF ETF and IShares Dividend
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between USCF and IShares is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding USCF ETF Trust and iShares Dividend and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Dividend and USCF ETF 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 ETF Trust are associated (or correlated) with IShares Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Dividend has no effect on the direction of USCF ETF i.e., USCF ETF and IShares Dividend go up and down completely randomly.
Pair Corralation between USCF ETF and IShares Dividend
Considering the 90-day investment horizon USCF ETF Trust is expected to under-perform the IShares Dividend. In addition to that, USCF ETF is 1.31 times more volatile than iShares Dividend and. It trades about -0.11 of its total potential returns per unit of risk. iShares Dividend and is currently generating about -0.13 per unit of volatility. If you would invest 5,018 in iShares Dividend and on September 12, 2024 and sell it today you would lose (78.00) from holding iShares Dividend and or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USCF ETF Trust vs. iShares Dividend and
Performance |
| Timeline |
| USCF ETF Trust |
| iShares Dividend |
USCF ETF and IShares Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF ETF and IShares Dividend
The main advantage of trading using opposite USCF ETF and IShares Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF ETF position performs unexpectedly, IShares Dividend 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 Dividend will offset losses from the drop in IShares Dividend's long position.| USCF ETF vs. Freedom Day Dividend | USCF ETF vs. Franklin Templeton ETF | USCF ETF vs. iShares MSCI China | USCF ETF vs. Tidal Trust II |
| IShares Dividend vs. Vanguard Value Index | IShares Dividend vs. Vanguard High Dividend | IShares Dividend vs. iShares Russell 1000 | IShares Dividend vs. iShares Core Dividend |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |