Correlation Between GraniteShares ETF and Advocate Capital
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Advocate Capital 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 Advocate Capital 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 Advocate Capital Management, you can compare the effects of market volatilities on GraniteShares ETF and Advocate Capital 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 Advocate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Advocate Capital.
Diversification Opportunities for GraniteShares ETF and Advocate Capital
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and Advocate is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Advocate Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advocate Capital Man 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 Advocate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advocate Capital Man has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Advocate Capital go up and down completely randomly.
Pair Corralation between GraniteShares ETF and Advocate Capital
If you would invest 3,444 in GraniteShares ETF Trust on August 27, 2024 and sell it today you would earn a total of 2,290 from holding GraniteShares ETF Trust or generate 66.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. Advocate Capital Management
Performance |
| Timeline |
| GraniteShares ETF Trust |
| Advocate Capital Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GraniteShares ETF and Advocate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and Advocate Capital
The main advantage of trading using opposite GraniteShares ETF and Advocate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Advocate Capital 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 Advocate Capital will offset losses from the drop in Advocate Capital's long position.| GraniteShares ETF vs. Direxion Daily SP | GraniteShares ETF vs. Direxion Daily Semiconductor | GraniteShares ETF vs. Direxion Daily Semiconductor |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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