Correlation Between GraniteShares and Amundi Index
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Amundi Index 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 Amundi Index 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 Amundi Index Solutions, you can compare the effects of market volatilities on GraniteShares and Amundi Index 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 Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Amundi Index.
Diversification Opportunities for GraniteShares and Amundi Index
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and Amundi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index 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 Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of GraniteShares i.e., GraniteShares and Amundi Index go up and down completely randomly.
Pair Corralation between GraniteShares and Amundi Index
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to generate 58.28 times more return on investment than Amundi Index. However, GraniteShares is 58.28 times more volatile than Amundi Index Solutions. It trades about 0.03 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.05 per unit of risk. If you would invest 21,145 in GraniteShares 3x Short on September 12, 2024 and sell it today you would earn a total of 43,468 from holding GraniteShares 3x Short or generate 205.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.03% |
| Values | Daily Returns |
GraniteShares 3x Short vs. Amundi Index Solutions
Performance |
| Timeline |
| GraniteShares 3x Short |
| Amundi Index Solutions |
GraniteShares and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Amundi Index
The main advantage of trading using opposite GraniteShares and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
| Amundi Index vs. WisdomTree Natural Gas | Amundi Index vs. Leverage Shares 3x | Amundi Index vs. GraniteShares 3x Short | Amundi Index vs. WisdomTree Natural Gas |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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