Correlation Between WisdomTree and GraniteShares FATANG
Can any of the company-specific risk be diversified away by investing in both WisdomTree and GraniteShares FATANG 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 WisdomTree and GraniteShares FATANG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree SP 500 and GraniteShares FATANG ETC, you can compare the effects of market volatilities on WisdomTree and GraniteShares FATANG 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 WisdomTree with a short position of GraniteShares FATANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and GraniteShares FATANG.
Diversification Opportunities for WisdomTree and GraniteShares FATANG
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and GraniteShares is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree SP 500 and GraniteShares FATANG ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares FATANG ETC and WisdomTree 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 WisdomTree SP 500 are associated (or correlated) with GraniteShares FATANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares FATANG ETC has no effect on the direction of WisdomTree i.e., WisdomTree and GraniteShares FATANG go up and down completely randomly.
Pair Corralation between WisdomTree and GraniteShares FATANG
Assuming the 90 days trading horizon WisdomTree SP 500 is expected to under-perform the GraniteShares FATANG. In addition to that, WisdomTree is 1.75 times more volatile than GraniteShares FATANG ETC. It trades about -0.05 of its total potential returns per unit of risk. GraniteShares FATANG ETC is currently generating about 0.4 per unit of volatility. If you would invest 4,117 in GraniteShares FATANG ETC on August 24, 2024 and sell it today you would earn a total of 616.00 from holding GraniteShares FATANG ETC or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree SP 500 vs. GraniteShares FATANG ETC
Performance |
| Timeline |
| WisdomTree SP 500 |
| GraniteShares FATANG ETC |
WisdomTree and GraniteShares FATANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and GraniteShares FATANG
The main advantage of trading using opposite WisdomTree and GraniteShares FATANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, GraniteShares FATANG 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 GraniteShares FATANG will offset losses from the drop in GraniteShares FATANG's long position.| WisdomTree vs. WisdomTree Zinc | WisdomTree vs. WisdomTree Brent Crude | WisdomTree vs. WisdomTree Aluminium 2x | WisdomTree vs. WisdomTree Enhanced Commodity |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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