Correlation Between Cboe UK and GraniteShares
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By analyzing existing cross correlation between Cboe UK Consumer and GraniteShares 3x Long, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and GraniteShares.
Diversification Opportunities for Cboe UK and GraniteShares
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cboe and GraniteShares is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and GraniteShares 3x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Long and Cboe UK 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 Cboe UK Consumer 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 Long has no effect on the direction of Cboe UK i.e., Cboe UK and GraniteShares go up and down completely randomly.
Pair Corralation between Cboe UK and GraniteShares
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.08 times more return on investment than GraniteShares. However, Cboe UK Consumer is 12.12 times less risky than GraniteShares. It trades about 0.47 of its potential returns per unit of risk. GraniteShares 3x Long is currently generating about -0.27 per unit of risk. If you would invest 2,925,026 in Cboe UK Consumer on August 30, 2024 and sell it today you would earn a total of 330,438 from holding Cboe UK Consumer or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. GraniteShares 3x Long
Performance |
| Timeline |
Cboe UK and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
GraniteShares 3x Long
Pair trading matchups for GraniteShares
Pair Trading with Cboe UK and GraniteShares
The main advantage of trading using opposite Cboe UK and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Southern Copper Corp | Cboe UK vs. Made Tech Group | Cboe UK vs. Wheaton Precious Metals | Cboe UK vs. TechnipFMC PLC |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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