Correlation Between CoreCommodity Natural and ETF Series

Can any of the company-specific risk be diversified away by investing in both CoreCommodity Natural and ETF Series 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 CoreCommodity Natural and ETF Series into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CoreCommodity Natural Resources and ETF Series Solutions, you can compare the effects of market volatilities on CoreCommodity Natural and ETF Series 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 CoreCommodity Natural with a short position of ETF Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCommodity Natural and ETF Series.

Diversification Opportunities for CoreCommodity Natural and ETF Series

0.66

Correlation Coefficient

CoreCommodity Natural  ETF Series

Poor diversification

The 3 months correlation between CoreCommodity and ETF is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CoreCommodity Natural Resource and ETF Series Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Series Solutions and CoreCommodity Natural 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 CoreCommodity Natural Resources are associated (or correlated) with ETF Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Series Solutions has no effect on the direction of CoreCommodity Natural i.e., CoreCommodity Natural and ETF Series go up and down completely randomly.

Pair Corralation between CoreCommodity Natural and ETF Series

If you would invest  2,457  in CoreCommodity Natural Resources on September 5, 2025 and sell it today you would earn a total of  856.00  from holding CoreCommodity Natural Resources or generate 34.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	0.0%
Values	Daily Returns

CoreCommodity Natural Resource  vs.  ETF Series Solutions

CoreCommodity Natural

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CoreCommodity Natural Resources are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, CoreCommodity Natural reported solid returns over the last few months and may actually be approaching a breakup point.

ETF Series Solutions

Risk-Adjusted Performance

Good

Over the last 90 days ETF Series Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, ETF Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CoreCommodity Natural and ETF Series

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

The idea behind CoreCommodity Natural Resources and ETF Series Solutions 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.