Correlation Between Saturna Al and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Saturna Al and GraniteShares 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 Saturna Al and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saturna Al Kawthar Global and GraniteShares 3x Short, you can compare the effects of market volatilities on Saturna Al and GraniteShares 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 Saturna Al with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saturna Al and GraniteShares.
Diversification Opportunities for Saturna Al and GraniteShares
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saturna and GraniteShares is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Saturna Al Kawthar Global and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short and Saturna Al 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 Saturna Al Kawthar Global are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Saturna Al i.e., Saturna Al and GraniteShares go up and down completely randomly.
Pair Corralation between Saturna Al and GraniteShares
Assuming the 90 days trading horizon Saturna Al Kawthar Global is expected to under-perform the GraniteShares. But the etf apears to be less risky and, when comparing its historical volatility, Saturna Al Kawthar Global is 9.36 times less risky than GraniteShares. The etf trades about -0.03 of its potential returns per unit of risk. The GraniteShares 3x Short is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 70,238 in GraniteShares 3x Short on September 12, 2024 and sell it today you would lose (5,625) from holding GraniteShares 3x Short or give up 8.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saturna Al Kawthar Global vs. GraniteShares 3x Short
Performance |
| Timeline |
| Saturna Al Kawthar |
| GraniteShares 3x Short |
Saturna Al and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saturna Al and GraniteShares
The main advantage of trading using opposite Saturna Al and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saturna Al position performs unexpectedly, GraniteShares 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 will offset losses from the drop in GraniteShares' long position.| Saturna Al vs. Saturna Al Kawthar Global | Saturna Al vs. iShares MSCI Japan | Saturna Al vs. Amundi EUR High | Saturna Al vs. iShares JP Morgan |
| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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