Correlation Between WisdomTree Silver and GraniteShares
Can any of the company-specific risk be diversified away by investing in both WisdomTree Silver and GraniteShares 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 WisdomTree Silver and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Silver 3x and GraniteShares 3x Short, you can compare the effects of market volatilities on WisdomTree Silver and GraniteShares 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 WisdomTree Silver with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Silver and GraniteShares.
Diversification Opportunities for WisdomTree Silver and GraniteShares
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and GraniteShares is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Silver 3x and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short and WisdomTree Silver 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 WisdomTree Silver 3x are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of WisdomTree Silver i.e., WisdomTree Silver and GraniteShares go up and down completely randomly.
Pair Corralation between WisdomTree Silver and GraniteShares
Assuming the 90 days trading horizon WisdomTree Silver 3x is expected to under-perform the GraniteShares. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Silver 3x is 1.19 times less risky than GraniteShares. The etf trades about -0.29 of its potential returns per unit of risk. The GraniteShares 3x Short is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,980 in GraniteShares 3x Short on August 28, 2024 and sell it today you would earn a total of 290.00 from holding GraniteShares 3x Short or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Silver 3x vs. GraniteShares 3x Short
Performance |
| Timeline |
| WisdomTree Silver |
| GraniteShares 3x Short |
WisdomTree Silver and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Silver and GraniteShares
The main advantage of trading using opposite WisdomTree Silver and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Silver position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| WisdomTree Silver vs. WisdomTree Zinc | WisdomTree Silver vs. WisdomTree Brent Crude | WisdomTree Silver vs. WisdomTree Aluminium 2x | WisdomTree Silver vs. WisdomTree Enhanced Commodity |
| GraniteShares vs. WisdomTree SP 500 | GraniteShares vs. WisdomTree Silver 3x | GraniteShares vs. Lyxor 10Y Inflation | GraniteShares vs. GraniteShares 3x Short |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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