Correlation Between GraniteShares ETF and Regents Park
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Regents Park 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 Regents Park 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 Regents Park Funds, you can compare the effects of market volatilities on GraniteShares ETF and Regents Park 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 Regents Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Regents Park.
Diversification Opportunities for GraniteShares ETF and Regents Park
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and Regents is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Regents Park Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regents Park Funds 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 Regents Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regents Park Funds has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Regents Park go up and down completely randomly.
Pair Corralation between GraniteShares ETF and Regents Park
If you would invest 2,282 in GraniteShares ETF Trust on September 1, 2024 and sell it today you would earn a total of 3,056 from holding GraniteShares ETF Trust or generate 133.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. Regents Park Funds
Performance |
| Timeline |
| GraniteShares ETF Trust |
| Regents Park Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GraniteShares ETF and Regents Park Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and Regents Park
The main advantage of trading using opposite GraniteShares ETF and Regents Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Regents Park 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 Regents Park will offset losses from the drop in Regents Park'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 |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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