US Dollar Correlations

DXUSD Commodity   107.51  0.30  0.28%   
The current 90-days correlation between US Dollar and Feeder Cattle Futures is 0.03 (i.e., Significant diversification). The correlation of US Dollar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

US Dollar Correlation With Market

Good diversification

The correlation between US Dollar and DJI is -0.06 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding US Dollar and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to US Dollar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace US Dollar when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back US Dollar - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling US Dollar to buy it.

Moving together with DXUSD Commodity

  0.69GOOG Alphabet Class CPairCorr

Moving against DXUSD Commodity

  0.65MRSIX Mfs Research InternaPairCorr
  0.62BRK-A Berkshire HathawayPairCorr
  0.6WPM Wheaton Precious MetalsPairCorr
  0.6KOREF KORE MiningPairCorr
  0.5COST Costco Wholesale CorpPairCorr
  0.48MCD McDonaldsPairCorr
  0.48KO Coca ColaPairCorr
  0.44U4R90AAB4 HLF 4875 01PairCorr
  0.44T ATT Inc Aggressive PushPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
CLUSDDXUSD
RBUSDGFUSX
DCUSDGFUSX
CLUSDRBUSD
CLUSDDCUSD
ALIUSDGFUSX
  
High negative correlations   
ALIUSDDXUSD

Risk-Adjusted Indicators

There is a big difference between DXUSD Commodity performing well and US Dollar Commodity doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze US Dollar's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

US Dollar Related Commodities

One prevalent trading approach among algorithmic traders in the commodities sector involves employing market-neutral strategies, wherein each trade is designed to hedge away specific risks. Given that this approach necessitates two distinct transactions, if one position underperforms unexpectedly, the other can potentially offset some of the losses. This method can be applied to commodities such as US Dollar, pairing it with other commodities or financial instruments to create a balanced, market-neutral setup.
 Risk & Return  Correlation