Correlation Between Communication Services and USCF Sustainable

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

By analyzing existing cross correlation between Communication Services Select and USCF Sustainable Battery, you can compare the effects of market volatilities on Communication Services and USCF Sustainable 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 Communication Services with a short position of USCF Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Communication Services and USCF Sustainable.

Diversification Opportunities for Communication Services and USCF Sustainable

0.58

Correlation Coefficient

Communication Services  USCF Sustainable

Very weak diversification

The 3 months correlation between Communication and USCF is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Communication Services Select and USCF Sustainable Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF Sustainable Battery and Communication Services 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 Communication Services Select are associated (or correlated) with USCF Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF Sustainable Battery has no effect on the direction of Communication Services i.e., Communication Services and USCF Sustainable go up and down completely randomly.

Pair Corralation between Communication Services and USCF Sustainable

Considering the 90-day investment horizon Communication Services is expected to generate 2.52 times less return on investment than USCF Sustainable. But when comparing it to its historical volatility, Communication Services Select is 1.3 times less risky than USCF Sustainable. It trades about 0.16 of its potential returns per unit of risk. USCF Sustainable Battery is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  1,503  in USCF Sustainable Battery on July 28, 2025 and sell it today you would earn a total of  339.00  from holding USCF Sustainable Battery or generate 22.55% return on investment over 90 days.

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

Communication Services Select  vs.  USCF Sustainable Battery

Communication Services

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Communication Services Select are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, Communication Services may actually be approaching a critical reversion point that can send shares even higher in November 2025.

USCF Sustainable Battery

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in USCF Sustainable Battery are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, USCF Sustainable sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Communication Services and USCF Sustainable

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

The idea behind Communication Services Select and USCF Sustainable Battery 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.