Correlation Between GraniteShares ETF and GraniteShares 175x
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and GraniteShares 175x 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 ETF and GraniteShares 175x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares ETF Trust and GraniteShares 175x Long, you can compare the effects of market volatilities on GraniteShares ETF and GraniteShares 175x 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 ETF with a short position of GraniteShares 175x. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and GraniteShares 175x.
Diversification Opportunities for GraniteShares ETF and GraniteShares 175x
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and GraniteShares is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and GraniteShares 175x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 175x Long and GraniteShares ETF 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 ETF Trust are associated (or correlated) with GraniteShares 175x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 175x Long has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and GraniteShares 175x go up and down completely randomly.
Pair Corralation between GraniteShares ETF and GraniteShares 175x
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 4.05 times more return on investment than GraniteShares 175x. However, GraniteShares ETF is 4.05 times more volatile than GraniteShares 175x Long. It trades about 0.29 of its potential returns per unit of risk. GraniteShares 175x Long is currently generating about -0.25 per unit of risk. If you would invest 2,459 in GraniteShares ETF Trust on September 3, 2024 and sell it today you would earn a total of 2,879 from holding GraniteShares ETF Trust or generate 117.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. GraniteShares 175x Long
Performance |
| Timeline |
| GraniteShares ETF Trust |
| GraniteShares 175x Long |
GraniteShares ETF and GraniteShares 175x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and GraniteShares 175x
The main advantage of trading using opposite GraniteShares ETF and GraniteShares 175x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, GraniteShares 175x 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 175x will offset losses from the drop in GraniteShares 175x's long position.| GraniteShares ETF vs. GraniteShares ETF Trust | GraniteShares ETF vs. Direxion Shares ETF | GraniteShares ETF vs. Direxion Daily AMZN | GraniteShares ETF vs. Direxion Daily GOOGL |
| GraniteShares 175x vs. ProShares Ultra SP500 | GraniteShares 175x vs. Direxion Daily SP500 | GraniteShares 175x vs. ProShares Ultra QQQ | GraniteShares 175x vs. Direxion Daily SP |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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