Correlation Between GraniteShares and Invesco FTSE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Invesco FTSE 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 Invesco FTSE 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 Invesco FTSE Emerging, you can compare the effects of market volatilities on GraniteShares and Invesco FTSE 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 Invesco FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Invesco FTSE.

Diversification Opportunities for GraniteShares and Invesco FTSE

-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between GraniteShares and Invesco is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and Invesco FTSE Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco FTSE Emerging 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 Invesco FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco FTSE Emerging has no effect on the direction of GraniteShares i.e., GraniteShares and Invesco FTSE go up and down completely randomly.

Pair Corralation between GraniteShares and Invesco FTSE

Assuming the 90 days trading horizon GraniteShares 3x Short is expected to under-perform the Invesco FTSE. In addition to that, GraniteShares is 17.04 times more volatile than Invesco FTSE Emerging. It trades about -0.19 of its total potential returns per unit of risk. Invesco FTSE Emerging is currently generating about 0.21 per unit of volatility. If you would invest  2,286  in Invesco FTSE Emerging on November 27, 2024 and sell it today you would earn a total of  58.00  from holding Invesco FTSE Emerging or generate 2.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GraniteShares 3x Short  vs.  Invesco FTSE Emerging

 Performance 
       Timeline  
GraniteShares 3x Short 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days GraniteShares 3x Short has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.
Invesco FTSE Emerging 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco FTSE Emerging are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Invesco FTSE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

GraniteShares and Invesco FTSE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GraniteShares and Invesco FTSE

The main advantage of trading using opposite GraniteShares and Invesco FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Invesco FTSE 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 Invesco FTSE will offset losses from the drop in Invesco FTSE's long position.
The idea behind GraniteShares 3x Short and Invesco FTSE Emerging pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.