Correlation Between GraniteShares ETF and Listed Funds
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Listed Funds 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 Listed Funds 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 Listed Funds Trust, you can compare the effects of market volatilities on GraniteShares ETF and Listed Funds 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 Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Listed Funds.
Diversification Opportunities for GraniteShares ETF and Listed Funds
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and Listed is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust 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 Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Listed Funds go up and down completely randomly.
Pair Corralation between GraniteShares ETF and Listed Funds
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 8.71 times more return on investment than Listed Funds. However, GraniteShares ETF is 8.71 times more volatile than Listed Funds Trust. It trades about 0.1 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.07 per unit of risk. If you would invest 565.00 in GraniteShares ETF Trust on August 30, 2024 and sell it today you would earn a total of 5,349 from holding GraniteShares ETF Trust or generate 946.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.1% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. Listed Funds Trust
Performance |
| Timeline |
| GraniteShares ETF Trust |
| Listed Funds Trust |
GraniteShares ETF and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and Listed Funds
The main advantage of trading using opposite GraniteShares ETF and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.| GraniteShares ETF vs. ABIVAX Socit Anonyme | GraniteShares ETF vs. Morningstar Unconstrained Allocation | GraniteShares ETF vs. SPACE | GraniteShares ETF vs. Knife River |
| Listed Funds vs. Horizon Kinetics Inflation | Listed Funds vs. PrairieSky Royalty | Listed Funds vs. Listed Funds Trust | Listed Funds vs. Enerflex |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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