Correlation Between GraniteShares ETF and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Guinness Atkinson 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 Guinness Atkinson 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 Guinness Atkinson Funds, you can compare the effects of market volatilities on GraniteShares ETF and Guinness Atkinson 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 Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Guinness Atkinson.
Diversification Opportunities for GraniteShares ETF and Guinness Atkinson
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and Guinness is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Guinness Atkinson Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson 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 Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Funds has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Guinness Atkinson go up and down completely randomly.
Pair Corralation between GraniteShares ETF and Guinness Atkinson
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 7.66 times more return on investment than Guinness Atkinson. However, GraniteShares ETF is 7.66 times more volatile than Guinness Atkinson Funds. It trades about 0.1 of its potential returns per unit of risk. Guinness Atkinson Funds is currently generating about -0.01 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. Guinness Atkinson Funds
Performance |
| Timeline |
| GraniteShares ETF Trust |
| Guinness Atkinson Funds |
GraniteShares ETF and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and Guinness Atkinson
The main advantage of trading using opposite GraniteShares ETF and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| GraniteShares ETF vs. ABIVAX Socit Anonyme | GraniteShares ETF vs. Morningstar Unconstrained Allocation | GraniteShares ETF vs. SPACE | GraniteShares ETF vs. Knife River |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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