Correlation Between GraniteShares and Fidelity Sustainable
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Fidelity Sustainable 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 Fidelity Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 3x Short and Fidelity Sustainable Research, you can compare the effects of market volatilities on GraniteShares and Fidelity Sustainable 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 Fidelity Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Fidelity Sustainable.
Diversification Opportunities for GraniteShares and Fidelity Sustainable
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and Fidelity is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and Fidelity Sustainable Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable 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 Short are associated (or correlated) with Fidelity Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable has no effect on the direction of GraniteShares i.e., GraniteShares and Fidelity Sustainable go up and down completely randomly.
Pair Corralation between GraniteShares and Fidelity Sustainable
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to generate 56.81 times more return on investment than Fidelity Sustainable. However, GraniteShares is 56.81 times more volatile than Fidelity Sustainable Research. It trades about 0.03 of its potential returns per unit of risk. Fidelity Sustainable Research is currently generating about 0.09 per unit of risk. If you would invest 10,590 in GraniteShares 3x Short on September 3, 2024 and sell it today you would lose (8,832) from holding GraniteShares 3x Short or give up 83.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GraniteShares 3x Short vs. Fidelity Sustainable Research
Performance |
| Timeline |
| GraniteShares 3x Short |
| Fidelity Sustainable |
GraniteShares and Fidelity Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Fidelity Sustainable
The main advantage of trading using opposite GraniteShares and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Fidelity Sustainable 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 Fidelity Sustainable will offset losses from the drop in Fidelity Sustainable's long position.| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
| Fidelity Sustainable vs. Leverage Shares 3x | Fidelity Sustainable vs. WisdomTree Natural Gas | Fidelity Sustainable vs. Leverage Shares 3x | Fidelity Sustainable 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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