Correlation Between USCF SummerHaven and Abrdn Bloomberg
Can any of the company-specific risk be diversified away by investing in both USCF SummerHaven and Abrdn Bloomberg 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 Abrdn Bloomberg 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 abrdn Bloomberg All, you can compare the effects of market volatilities on USCF SummerHaven and Abrdn Bloomberg 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 Abrdn Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF SummerHaven and Abrdn Bloomberg.
Diversification Opportunities for USCF SummerHaven and Abrdn Bloomberg
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between USCF and Abrdn is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding USCF SummerHaven Dynamic and abrdn Bloomberg All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Bloomberg All 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 Abrdn Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Bloomberg All has no effect on the direction of USCF SummerHaven i.e., USCF SummerHaven and Abrdn Bloomberg go up and down completely randomly.
Pair Corralation between USCF SummerHaven and Abrdn Bloomberg
Given the investment horizon of 90 days USCF SummerHaven is expected to generate 1.13 times less return on investment than Abrdn Bloomberg. In addition to that, USCF SummerHaven is 1.2 times more volatile than abrdn Bloomberg All. It trades about 0.27 of its total potential returns per unit of risk. abrdn Bloomberg All is currently generating about 0.36 per unit of volatility. If you would invest 3,144 in abrdn Bloomberg All on January 24, 2024 and sell it today you would earn a total of 125.00 from holding abrdn Bloomberg All or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
USCF SummerHaven Dynamic vs. abrdn Bloomberg All
Performance |
| Timeline |
| USCF SummerHaven Dynamic |
| abrdn Bloomberg All |
USCF SummerHaven and Abrdn Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF SummerHaven and Abrdn Bloomberg
The main advantage of trading using opposite USCF SummerHaven and Abrdn Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF SummerHaven position performs unexpectedly, Abrdn Bloomberg 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 Abrdn Bloomberg will offset losses from the drop in Abrdn Bloomberg's long position.| USCF SummerHaven vs. abrdn Bloomberg All | USCF SummerHaven vs. GraniteShares Bloomberg Commodity | USCF SummerHaven vs. iShares Bloomberg Roll | USCF SummerHaven vs. iShares Commodity Curve |
| Abrdn Bloomberg vs. abrdn Bloomberg All | Abrdn Bloomberg vs. iShares Bloomberg Roll | Abrdn Bloomberg vs. GraniteShares Bloomberg Commodity | Abrdn Bloomberg vs. iShares GSCI Commodity |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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