messing around w/ data. $PM and $UUP since dec & #39;08. benefit to holding some long USD in conjuction? corr is ~-4. on mthly basis. 80/20 PM/UUP improves r/r, but gives up return. naturally, lever. nice results on costless basis, eaten away at 2% borrow on UUP.

with $EEM, corr ~-.7 over same time period. fk it, let& #39;s hedge the whole thing. using 2% cost to borrow, holding 100/100 portfolio gives good results. 2% too low and unrealistic.

there is benefit to managing the short USD exposure b/c FX risk matters, but, costs probably eat away at much of the benefit. maybe there& #39;s something there with trend/risk contribution for trying to decide when/if/how to manage

and why UUP? easy to grab data. it& #39;s probably not the best long USD hedge vehicle, either, and the management fee of the ETF would make the above results worse