Correlation Between US Global and LeaderSharesTM AlphaFactor
Can any of the company-specific risk be diversified away by investing in both US Global and LeaderSharesTM AlphaFactor 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 US Global and LeaderSharesTM AlphaFactor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global GO and LeaderSharesTM AlphaFactor Core, you can compare the effects of market volatilities on US Global and LeaderSharesTM AlphaFactor 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 US Global with a short position of LeaderSharesTM AlphaFactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and LeaderSharesTM AlphaFactor.
Diversification Opportunities for US Global and LeaderSharesTM AlphaFactor
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GOAU and LeaderSharesTM is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding US Global GO and LeaderSharesTM AlphaFactor Cor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeaderSharesTM AlphaFactor and US Global 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 US Global GO are associated (or correlated) with LeaderSharesTM AlphaFactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeaderSharesTM AlphaFactor has no effect on the direction of US Global i.e., US Global and LeaderSharesTM AlphaFactor go up and down completely randomly.
Pair Corralation between US Global and LeaderSharesTM AlphaFactor
Given the investment horizon of 90 days US Global GO is expected to generate 3.09 times more return on investment than LeaderSharesTM AlphaFactor. However, US Global is 3.09 times more volatile than LeaderSharesTM AlphaFactor Core. It trades about 0.08 of its potential returns per unit of risk. LeaderSharesTM AlphaFactor Core is currently generating about 0.04 per unit of risk. If you would invest 3,617 in US Global GO on September 8, 2025 and sell it today you would earn a total of 480.00 from holding US Global GO or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global GO vs. LeaderSharesTM AlphaFactor Cor
Performance |
| Timeline |
| US Global GO |
| LeaderSharesTM AlphaFactor |
US Global and LeaderSharesTM AlphaFactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and LeaderSharesTM AlphaFactor
The main advantage of trading using opposite US Global and LeaderSharesTM AlphaFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, LeaderSharesTM AlphaFactor 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 LeaderSharesTM AlphaFactor will offset losses from the drop in LeaderSharesTM AlphaFactor's long position.| US Global vs. Sprott Active Metals | US Global vs. Direxion Daily Gold | US Global vs. SPDR SP North | US Global vs. Xtrackers RREEF Global |
| LeaderSharesTM AlphaFactor vs. Strategy Shares | LeaderSharesTM AlphaFactor vs. Freedom Day Dividend | LeaderSharesTM AlphaFactor vs. Franklin Templeton ETF | LeaderSharesTM AlphaFactor vs. iShares MSCI China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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