Correlation Between GraniteShares and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both GraniteShares and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on GraniteShares and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and SSgA SPDR.
Diversification Opportunities for GraniteShares and SSgA SPDR
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and SSgA is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of GraniteShares i.e., GraniteShares and SSgA SPDR go up and down completely randomly.
Pair Corralation between GraniteShares and SSgA SPDR
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to under-perform the SSgA SPDR. In addition to that, GraniteShares is 6.87 times more volatile than SSgA SPDR ETFs. It trades about -0.03 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about -0.06 per unit of volatility. If you would invest 18,169 in SSgA SPDR ETFs on October 23, 2024 and sell it today you would lose (277.00) from holding SSgA SPDR ETFs or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
GraniteShares 3x Short vs. SSgA SPDR ETFs
Performance |
| Timeline |
| GraniteShares 3x Short |
| SSgA SPDR ETFs |
GraniteShares and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and SSgA SPDR
The main advantage of trading using opposite GraniteShares and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Short |
| SSgA SPDR vs. SSgA SPDR Barclays | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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