Correlation Between Xtrackers California and GraniteShares 125x
Can any of the company-specific risk be diversified away by investing in both Xtrackers California and GraniteShares 125x 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 Xtrackers California and GraniteShares 125x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers California Municipal and GraniteShares 125x Long, you can compare the effects of market volatilities on Xtrackers California and GraniteShares 125x 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 Xtrackers California with a short position of GraniteShares 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers California and GraniteShares 125x.
Diversification Opportunities for Xtrackers California and GraniteShares 125x
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xtrackers and GraniteShares is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers California Municipal and GraniteShares 125x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 125x Long and Xtrackers California 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 Xtrackers California Municipal are associated (or correlated) with GraniteShares 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 125x Long has no effect on the direction of Xtrackers California i.e., Xtrackers California and GraniteShares 125x go up and down completely randomly.
Pair Corralation between Xtrackers California and GraniteShares 125x
Allowing for the 90-day total investment horizon Xtrackers California is expected to generate 38.62 times less return on investment than GraniteShares 125x. But when comparing it to its historical volatility, Xtrackers California Municipal is 18.5 times less risky than GraniteShares 125x. It trades about 0.03 of its potential returns per unit of risk. GraniteShares 125x Long is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 870.00 in GraniteShares 125x Long on October 25, 2024 and sell it today you would earn a total of 995.00 from holding GraniteShares 125x Long or generate 114.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 56.19% |
| Values | Daily Returns |
Xtrackers California Municipal vs. GraniteShares 125x Long
Performance |
| Timeline |
| Xtrackers California |
| GraniteShares 125x Long |
Xtrackers California and GraniteShares 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers California and GraniteShares 125x
The main advantage of trading using opposite Xtrackers California and GraniteShares 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers California position performs unexpectedly, GraniteShares 125x 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 125x will offset losses from the drop in GraniteShares 125x's long position.| Xtrackers California vs. VanEck Vectors Moodys | Xtrackers California vs. Valued Advisers Trust | Xtrackers California vs. Principal Exchange Traded Funds | Xtrackers California vs. Vanguard ESG Corporate |
| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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