Correlation Between GraniteShares and UBS Fund
Can any of the company-specific risk be diversified away by investing in both GraniteShares and UBS Fund 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 UBS Fund 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 UBS Fund Solutions, you can compare the effects of market volatilities on GraniteShares and UBS Fund 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 UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and UBS Fund.
Diversification Opportunities for GraniteShares and UBS Fund
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and UBS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund 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 UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of GraniteShares i.e., GraniteShares and UBS Fund go up and down completely randomly.
Pair Corralation between GraniteShares and UBS Fund
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to under-perform the UBS Fund. In addition to that, GraniteShares is 2.61 times more volatile than UBS Fund Solutions. It trades about -0.09 of its total potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.0 per unit of volatility. If you would invest 71,820 in UBS Fund Solutions on August 30, 2024 and sell it today you would lose (895.00) from holding UBS Fund Solutions or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 3x Short vs. UBS Fund Solutions
Performance |
| Timeline |
| GraniteShares 3x Short |
| UBS Fund Solutions |
GraniteShares and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and UBS Fund
The main advantage of trading using opposite GraniteShares and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, UBS Fund 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 UBS Fund will offset losses from the drop in UBS Fund's long position.| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
| UBS Fund vs. GraniteShares 3x Short | UBS Fund vs. WisdomTree Natural Gas | UBS Fund vs. Leverage Shares 3x | UBS Fund 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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