Correlation Between GraniteShares and Global X
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Global X 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 Global X 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 Global X Infrastructure, you can compare the effects of market volatilities on GraniteShares and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Global X.
Diversification Opportunities for GraniteShares and Global X
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between GraniteShares and Global is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and Global X Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Infrastructure 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Infrastructure has no effect on the direction of GraniteShares i.e., GraniteShares and Global X go up and down completely randomly.
Pair Corralation between GraniteShares and Global X
Assuming the 90 days trading horizon GraniteShares is expected to generate 4.53 times less return on investment than Global X. In addition to that, GraniteShares is 3.15 times more volatile than Global X Infrastructure. It trades about 0.01 of its total potential returns per unit of risk. Global X Infrastructure is currently generating about 0.18 per unit of volatility. If you would invest 3,644 in Global X Infrastructure on September 2, 2024 and sell it today you would earn a total of 587.00 from holding Global X Infrastructure or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 3x Short vs. Global X Infrastructure
Performance |
| Timeline |
| GraniteShares 3x Short |
| Global X Infrastructure |
GraniteShares and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Global X
The main advantage of trading using opposite GraniteShares and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| GraniteShares vs. WisdomTree Natural Gas | GraniteShares vs. Leverage Shares 3x | GraniteShares vs. WisdomTree Natural Gas | GraniteShares vs. WisdomTree SP 500 |
| Global X vs. Global X Data | Global X vs. Global X Copper | Global X vs. Global X ETFs | Global X vs. Global X Uranium |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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