Correlation Between USCF ETF and AdvisorShares Hotel
Can any of the company-specific risk be diversified away by investing in both USCF ETF and AdvisorShares Hotel 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 ETF and AdvisorShares Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USCF ETF Trust and AdvisorShares Hotel ETF, you can compare the effects of market volatilities on USCF ETF and AdvisorShares Hotel 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 ETF with a short position of AdvisorShares Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF ETF and AdvisorShares Hotel.
Diversification Opportunities for USCF ETF and AdvisorShares Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USCF and AdvisorShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding USCF ETF Trust and AdvisorShares Hotel ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Hotel ETF and USCF ETF 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 ETF Trust are associated (or correlated) with AdvisorShares Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Hotel ETF has no effect on the direction of USCF ETF i.e., USCF ETF and AdvisorShares Hotel go up and down completely randomly.
Pair Corralation between USCF ETF and AdvisorShares Hotel
If you would invest (100.00) in AdvisorShares Hotel ETF on August 26, 2025 and sell it today you would earn a total of 100.00 from holding AdvisorShares Hotel ETF or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
USCF ETF Trust vs. AdvisorShares Hotel ETF
Performance |
| Timeline |
| USCF ETF Trust |
Risk-Adjusted Performance
Fair
Weak | Strong |
| AdvisorShares Hotel ETF |
USCF ETF and AdvisorShares Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF ETF and AdvisorShares Hotel
The main advantage of trading using opposite USCF ETF and AdvisorShares Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF ETF position performs unexpectedly, AdvisorShares Hotel 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 AdvisorShares Hotel will offset losses from the drop in AdvisorShares Hotel's long position.The idea behind USCF ETF Trust and AdvisorShares Hotel ETF 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.| AdvisorShares Hotel vs. Capitol Series Trust | AdvisorShares Hotel vs. Strategy Shares | AdvisorShares Hotel vs. iShares Nasdaq 100 ex | AdvisorShares Hotel vs. Freedom Day Dividend |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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