Correlation Between Emerald Growth and USCF Gold
Can any of the company-specific risk be diversified away by investing in both Emerald Growth and USCF 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 Emerald Growth and USCF Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Growth Fund and USCF Gold Strategy, you can compare the effects of market volatilities on Emerald Growth and USCF 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 Emerald Growth with a short position of USCF Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Growth and USCF Gold.
Diversification Opportunities for Emerald Growth and USCF Gold
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerald and USCF is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Growth Fund and USCF Gold Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF Gold Strategy and Emerald Growth 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 Emerald Growth Fund are associated (or correlated) with USCF Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF Gold Strategy has no effect on the direction of Emerald Growth i.e., Emerald Growth and USCF Gold go up and down completely randomly.
Pair Corralation between Emerald Growth and USCF Gold
Assuming the 90 days horizon Emerald Growth is expected to generate 5.96 times less return on investment than USCF Gold. In addition to that, Emerald Growth is 2.16 times more volatile than USCF Gold Strategy. It trades about 0.03 of its total potential returns per unit of risk. USCF Gold Strategy is currently generating about 0.37 per unit of volatility. If you would invest 2,450 in USCF Gold Strategy on February 15, 2024 and sell it today you would earn a total of 320.00 from holding USCF Gold Strategy or generate 13.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Emerald Growth Fund vs. USCF Gold Strategy
Performance |
Timeline |
Emerald Growth |
USCF Gold Strategy |
Emerald Growth and USCF Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Emerald Growth and USCF Gold
The main advantage of trading using opposite Emerald Growth and USCF Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Growth position performs unexpectedly, USCF 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 USCF Gold will offset losses from the drop in USCF Gold's long position.Emerald Growth vs. HUMANA INC | Emerald Growth vs. Aquagold International | Emerald Growth vs. Barloworld Ltd ADR | Emerald Growth vs. Morningstar Unconstrained Allocation |
USCF Gold vs. MicroSectors Gold 3X | USCF Gold vs. Franklin Responsibly Sourced | USCF Gold vs. ProShares Ultra Silver | USCF Gold vs. GraniteShares Gold Trust |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Global Correlations Find global opportunities by holding instruments from different markets | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |