Correlation Between GraniteShares and JPMorgan Ireland
Can any of the company-specific risk be diversified away by investing in both GraniteShares and JPMorgan Ireland 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 JPMorgan Ireland 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 JPMorgan Ireland ICAV, you can compare the effects of market volatilities on GraniteShares and JPMorgan Ireland 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 JPMorgan Ireland. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and JPMorgan Ireland.
Diversification Opportunities for GraniteShares and JPMorgan Ireland
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and JPMorgan is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and JPMorgan Ireland ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Ireland ICAV 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 JPMorgan Ireland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Ireland ICAV has no effect on the direction of GraniteShares i.e., GraniteShares and JPMorgan Ireland go up and down completely randomly.
Pair Corralation between GraniteShares and JPMorgan Ireland
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to generate 218.2 times more return on investment than JPMorgan Ireland. However, GraniteShares is 218.2 times more volatile than JPMorgan Ireland ICAV. It trades about 0.08 of its potential returns per unit of risk. JPMorgan Ireland ICAV is currently generating about 0.03 per unit of risk. If you would invest 388.00 in GraniteShares 3x Short on September 3, 2024 and sell it today you would earn a total of 63,075 from holding GraniteShares 3x Short or generate 16256.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 3x Short vs. JPMorgan Ireland ICAV
Performance |
| Timeline |
| GraniteShares 3x Short |
| JPMorgan Ireland ICAV |
GraniteShares and JPMorgan Ireland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and JPMorgan Ireland
The main advantage of trading using opposite GraniteShares and JPMorgan Ireland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, JPMorgan Ireland 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 JPMorgan Ireland will offset losses from the drop in JPMorgan Ireland's long position.| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
| JPMorgan Ireland vs. JPMorgan ETFs ICAV | JPMorgan Ireland vs. JPMorgan ETFs ICAV | JPMorgan Ireland vs. JPMorgan ETFs Ireland | JPMorgan Ireland vs. JPMorgan ETFs Ireland |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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