Correlation Between GraniteShares and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both GraniteShares and UBSFund Solutions 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 UBSFund Solutions 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 UBSFund Solutions Bloomberg, you can compare the effects of market volatilities on GraniteShares and UBSFund Solutions 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 UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and UBSFund Solutions.
Diversification Opportunities for GraniteShares and UBSFund Solutions
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and UBSFund is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and UBSFund Solutions Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions 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 UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions has no effect on the direction of GraniteShares i.e., GraniteShares and UBSFund Solutions go up and down completely randomly.
Pair Corralation between GraniteShares and UBSFund Solutions
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to under-perform the UBSFund Solutions. In addition to that, GraniteShares is 7.49 times more volatile than UBSFund Solutions Bloomberg. It trades about -0.1 of its total potential returns per unit of risk. UBSFund Solutions Bloomberg is currently generating about 0.15 per unit of volatility. If you would invest 81,863 in UBSFund Solutions Bloomberg on September 1, 2024 and sell it today you would earn a total of 1,275 from holding UBSFund Solutions Bloomberg or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GraniteShares 3x Short vs. UBSFund Solutions Bloomberg
Performance |
| Timeline |
| GraniteShares 3x Short |
| UBSFund Solutions |
GraniteShares and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and UBSFund Solutions
The main advantage of trading using opposite GraniteShares and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, UBSFund Solutions 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 UBSFund Solutions will offset losses from the drop in UBSFund Solutions' long position.| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
| UBSFund Solutions vs. Leverage Shares 3x | UBSFund Solutions vs. WisdomTree Natural Gas | UBSFund Solutions vs. GraniteShares 3x Short | UBSFund Solutions vs. Leverage Shares 3x |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |