Correlation Between UGAZ and DB Gold
Can any of the company-specific risk be diversified away by investing in both UGAZ and DB Gold 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 UGAZ and DB Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UGAZ and DB Gold Double, you can compare the effects of market volatilities on UGAZ and DB Gold 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 UGAZ with a short position of DB Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of UGAZ and DB Gold.
Diversification Opportunities for UGAZ and DB Gold
Pay attention - limited upside
The 3 months correlation between UGAZ and DGP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UGAZ and DB Gold Double in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Gold Double and UGAZ 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 UGAZ are associated (or correlated) with DB Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Gold Double has no effect on the direction of UGAZ i.e., UGAZ and DB Gold go up and down completely randomly.
Pair Corralation between UGAZ and DB Gold
If you would invest 4,274 in DB Gold Double on January 20, 2024 and sell it today you would earn a total of 1,428 from holding DB Gold Double or generate 33.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UGAZ vs. DB Gold Double
Performance |
| Timeline |
| UGAZ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| DB Gold Double |
UGAZ and DB Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UGAZ and DB Gold
The main advantage of trading using opposite UGAZ and DB Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UGAZ position performs unexpectedly, DB Gold 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 DB Gold will offset losses from the drop in DB Gold's long position.The idea behind UGAZ and DB Gold Double pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| DB Gold vs. DB Gold Double | DB Gold vs. ProShares Ultra Gold | DB Gold vs. DB Gold Short | DB Gold vs. ProShares Ultra Silver |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |