Pair Correlation Between United States and VelocityShares 3x

This module allows you to analyze existing cross correlation between United States 3x Oil Fund and VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER. You can compare the effects of market volatilities on United States and VelocityShares 3x 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 United States with a short position of VelocityShares 3x. See also your portfolio center. Please also check ongoing floating volatility patterns of United States and VelocityShares 3x.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 United States 3x Oil Fund  vs   VelocityShares 3x Long Crude O
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, United States 3x Oil Fund is expected to generate 0.99 times more return on investment than VelocityShares 3x. However, United States 3x Oil Fund is 1.01 times less risky than VelocityShares 3x. It trades about 0.11 of its potential returns per unit of risk. VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER is currently generating about 0.1 per unit of risk. If you would invest  2,767  in United States 3x Oil Fund on September 18, 2017 and sell it today you would earn a total of  239.43  from holding United States 3x Oil Fund or generate 8.65% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between United States and VelocityShares 3x
0.93

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding United States 3x Oil Fund and VelocityShares 3x Long Crude O in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on VelocityShares 3x Long and United States 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 United States 3x Oil Fund are associated (or correlated) with VelocityShares 3x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VelocityShares 3x Long has no effect on the direction of United States i.e. United States and VelocityShares 3x go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

United States 3x

  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in United States 3x Oil Fund are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.

VelocityShares 3x Long

  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VelocityShares 3x Long Crude Oil ETNs linked to the SP GSCI Crude Oil Index ER are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.