Correlation Between GraniteShares and Ossiam Lux
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Ossiam Lux 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 GraniteShares and Ossiam Lux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 3x Long and Ossiam Lux , you can compare the effects of market volatilities on GraniteShares and Ossiam Lux 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 GraniteShares with a short position of Ossiam Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Ossiam Lux.
Diversification Opportunities for GraniteShares and Ossiam Lux
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GraniteShares and Ossiam is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Long and Ossiam Lux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Lux and GraniteShares 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 GraniteShares 3x Long are associated (or correlated) with Ossiam Lux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Lux has no effect on the direction of GraniteShares i.e., GraniteShares and Ossiam Lux go up and down completely randomly.
Pair Corralation between GraniteShares and Ossiam Lux
Assuming the 90 days trading horizon GraniteShares 3x Long is expected to generate 3.7 times more return on investment than Ossiam Lux. However, GraniteShares is 3.7 times more volatile than Ossiam Lux . It trades about 0.27 of its potential returns per unit of risk. Ossiam Lux is currently generating about 0.41 per unit of risk. If you would invest 6,913 in GraniteShares 3x Long on September 2, 2024 and sell it today you would earn a total of 1,248 from holding GraniteShares 3x Long or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 3x Long vs. Ossiam Lux
Performance |
| Timeline |
| GraniteShares 3x Long |
| Ossiam Lux |
GraniteShares and Ossiam Lux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Ossiam Lux
The main advantage of trading using opposite GraniteShares and Ossiam Lux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Ossiam Lux 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 Ossiam Lux will offset losses from the drop in Ossiam Lux's long position.| GraniteShares vs. WisdomTree Natural Gas | GraniteShares vs. Leverage Shares 3x | GraniteShares vs. WisdomTree Natural Gas | GraniteShares vs. WisdomTree SP 500 |
| Ossiam Lux vs. Ossiam Shiller Barclays | Ossiam Lux vs. Ossiam Europe ESG | Ossiam Lux vs. Ossiam Minimum Variance | Ossiam Lux vs. Ossiam Shiller Barclays |
Check out your portfolio center.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |