Correlation Between USCF Gold and Janus Triton

Can any of the company-specific risk be diversified away by investing in both USCF Gold and Janus Triton 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 Gold and Janus Triton into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between USCF Gold Strategy and Janus Triton Fund, you can compare the effects of market volatilities on USCF Gold and Janus Triton 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 Gold with a short position of Janus Triton. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF Gold and Janus Triton.

Diversification Opportunities for USCF Gold and Janus Triton

0.18

Correlation Coefficient

USCF Gold  Janus Triton

Average diversification

The 3 months correlation between USCF and Janus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding USCF Gold Strategy and Janus Triton Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Triton and USCF Gold 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 Gold Strategy are associated (or correlated) with Janus Triton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Triton has no effect on the direction of USCF Gold i.e., USCF Gold and Janus Triton go up and down completely randomly.

Pair Corralation between USCF Gold and Janus Triton

Considering the 90-day investment horizon USCF Gold is expected to generate 1.09 times less return on investment than Janus Triton. But when comparing it to its historical volatility, USCF Gold Strategy is 1.88 times less risky than Janus Triton. It trades about 0.05 of its potential returns per unit of risk. Janus Triton Fund is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,330  in Janus Triton Fund on January 29, 2024 and sell it today you would earn a total of  342.00  from holding Janus Triton Fund or generate 14.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

USCF Gold Strategy  vs.  Janus Triton Fund

USCF Gold Strategy

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in USCF Gold Strategy are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, USCF Gold may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Janus Triton

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Triton Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Janus Triton is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with USCF Gold and Janus Triton

The main advantage of trading using opposite USCF Gold and Janus Triton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF Gold position performs unexpectedly, Janus Triton 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 Janus Triton will offset losses from the drop in Janus Triton's long position.

The idea behind USCF Gold Strategy and Janus Triton Fund 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.