Correlation Between EA Series and USCF Midstream

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

By analyzing existing cross correlation between EA Series Trust and USCF Midstream Energy, you can compare the effects of market volatilities on EA Series and USCF Midstream 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 EA Series with a short position of USCF Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and USCF Midstream.

Diversification Opportunities for EA Series and USCF Midstream

0.56

Correlation Coefficient

EA Series  USCF Midstream

Very weak diversification

The 3 months correlation between DRLL and USCF is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and USCF Midstream Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF Midstream Energy and EA Series 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 EA Series Trust are associated (or correlated) with USCF Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF Midstream Energy has no effect on the direction of EA Series i.e., EA Series and USCF Midstream go up and down completely randomly.

Pair Corralation between EA Series and USCF Midstream

Given the investment horizon of 90 days EA Series Trust is expected to generate 1.46 times more return on investment than USCF Midstream. However, EA Series is 1.46 times more volatile than USCF Midstream Energy. It trades about 0.1 of its potential returns per unit of risk. USCF Midstream Energy is currently generating about 0.01 per unit of risk. If you would invest  2,586  in EA Series Trust on April 29, 2025 and sell it today you would earn a total of  208.00  from holding EA Series Trust or generate 8.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

EA Series Trust  vs.  USCF Midstream Energy

EA Series Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EA Series Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal essential indicators, EA Series may actually be approaching a critical reversion point that can send shares even higher in August 2025.

USCF Midstream Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days USCF Midstream Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, USCF Midstream is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with EA Series and USCF Midstream

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

The idea behind EA Series Trust and USCF Midstream Energy 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.