Correlation Between GraniteShares and Ossiam ESG
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Ossiam ESG 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 ESG 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 ESG Low, you can compare the effects of market volatilities on GraniteShares and Ossiam ESG 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 ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Ossiam ESG.
Diversification Opportunities for GraniteShares and Ossiam ESG
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GraniteShares and Ossiam is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Long and Ossiam ESG Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam ESG Low 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 ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam ESG Low has no effect on the direction of GraniteShares i.e., GraniteShares and Ossiam ESG go up and down completely randomly.
Pair Corralation between GraniteShares and Ossiam ESG
Assuming the 90 days trading horizon GraniteShares 3x Long is expected to generate 6.53 times more return on investment than Ossiam ESG. However, GraniteShares is 6.53 times more volatile than Ossiam ESG Low. It trades about 0.15 of its potential returns per unit of risk. Ossiam ESG Low is currently generating about 0.08 per unit of risk. If you would invest 966.00 in GraniteShares 3x Long on September 2, 2024 and sell it today you would earn a total of 7,195 from holding GraniteShares 3x Long or generate 744.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 71.29% |
| Values | Daily Returns |
GraniteShares 3x Long vs. Ossiam ESG Low
Performance |
| Timeline |
| GraniteShares 3x Long |
| Ossiam ESG Low |
GraniteShares and Ossiam ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Ossiam ESG
The main advantage of trading using opposite GraniteShares and Ossiam ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Ossiam ESG 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 ESG will offset losses from the drop in Ossiam ESG's long position.| GraniteShares vs. WisdomTree Natural Gas | GraniteShares vs. Leverage Shares 3x | GraniteShares vs. WisdomTree Natural Gas | GraniteShares vs. WisdomTree Silver 3x |
| Ossiam ESG vs. Ossiam Shiller Barclays | Ossiam ESG vs. Ossiam Europe ESG | Ossiam ESG vs. Ossiam Minimum Variance | Ossiam ESG 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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