Correlation Between USCF ETF and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both USCF ETF and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman Commodity, you can compare the effects of market volatilities on USCF ETF and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF ETF and Neuberger Berman.
Diversification Opportunities for USCF ETF and Neuberger Berman
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USCF and Neuberger is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding USCF ETF Trust and Neuberger Berman Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Com 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Com has no effect on the direction of USCF ETF i.e., USCF ETF and Neuberger Berman go up and down completely randomly.
Pair Corralation between USCF ETF and Neuberger Berman
Considering the 90-day investment horizon USCF ETF Trust is expected to under-perform the Neuberger Berman. In addition to that, USCF ETF is 1.22 times more volatile than Neuberger Berman Commodity. It trades about -0.16 of its total potential returns per unit of risk. Neuberger Berman Commodity is currently generating about 0.19 per unit of volatility. If you would invest 2,149 in Neuberger Berman Commodity on September 13, 2024 and sell it today you would earn a total of 56.10 from holding Neuberger Berman Commodity or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USCF ETF Trust vs. Neuberger Berman Commodity
Performance |
| Timeline |
| USCF ETF Trust |
| Neuberger Berman Com |
USCF ETF and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF ETF and Neuberger Berman
The main advantage of trading using opposite USCF ETF and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF ETF position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman'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 |
| Neuberger Berman vs. Harbor All Weather Inflation | Neuberger Berman vs. iShares Bloomberg Roll | Neuberger Berman vs. VanEck Inflation Allocation | Neuberger Berman vs. USCF SummerHaven Dynamic |
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.
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