Correlation Between Granite 3x and Blockchain Group
Can any of the company-specific risk be diversified away by investing in both Granite 3x and Blockchain Group 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 Granite 3x and Blockchain Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite 3x LVMH and Blockchain Group SA, you can compare the effects of market volatilities on Granite 3x and Blockchain Group 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 Granite 3x with a short position of Blockchain Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite 3x and Blockchain Group.
Diversification Opportunities for Granite 3x and Blockchain Group
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Granite and Blockchain is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Granite 3x LVMH and Blockchain Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Group and Granite 3x 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 Granite 3x LVMH are associated (or correlated) with Blockchain Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Group has no effect on the direction of Granite 3x i.e., Granite 3x and Blockchain Group go up and down completely randomly.
Pair Corralation between Granite 3x and Blockchain Group
Assuming the 90 days trading horizon Granite 3x LVMH is expected to under-perform the Blockchain Group. But the etf apears to be less risky and, when comparing its historical volatility, Granite 3x LVMH is 1.02 times less risky than Blockchain Group. The etf trades about -0.07 of its potential returns per unit of risk. The Blockchain Group SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Blockchain Group SA on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Blockchain Group SA or generate 31.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 70.4% |
| Values | Daily Returns |
Granite 3x LVMH vs. Blockchain Group SA
Performance |
| Timeline |
| Granite 3x LVMH |
| Blockchain Group |
Granite 3x and Blockchain Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite 3x and Blockchain Group
The main advantage of trading using opposite Granite 3x and Blockchain Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite 3x position performs unexpectedly, Blockchain Group 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 Blockchain Group will offset losses from the drop in Blockchain Group's long position.| Granite 3x vs. Lyxor UCITS Japan | Granite 3x vs. Lyxor UCITS Japan | Granite 3x vs. Lyxor UCITS Stoxx | Granite 3x vs. Amundi CAC 40 |
| Blockchain Group vs. FNP Technologies SA | Blockchain Group vs. Manitou BF SA | Blockchain Group vs. Ossiam Minimum Variance | Blockchain Group vs. Granite 3x LVMH |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance |