Correlation Between Tidal Trust and GraniteShares HIPS
Can any of the company-specific risk be diversified away by investing in both Tidal Trust and GraniteShares HIPS 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 Tidal Trust and GraniteShares HIPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and GraniteShares HIPS High, you can compare the effects of market volatilities on Tidal Trust and GraniteShares HIPS 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 Tidal Trust with a short position of GraniteShares HIPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and GraniteShares HIPS.
Diversification Opportunities for Tidal Trust and GraniteShares HIPS
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tidal and GraniteShares is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and GraniteShares HIPS High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares HIPS High and Tidal Trust 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 Tidal Trust II are associated (or correlated) with GraniteShares HIPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares HIPS High has no effect on the direction of Tidal Trust i.e., Tidal Trust and GraniteShares HIPS go up and down completely randomly.
Pair Corralation between Tidal Trust and GraniteShares HIPS
Given the investment horizon of 90 days Tidal Trust is expected to generate 1.43 times less return on investment than GraniteShares HIPS. In addition to that, Tidal Trust is 2.12 times more volatile than GraniteShares HIPS High. It trades about 0.04 of its total potential returns per unit of risk. GraniteShares HIPS High is currently generating about 0.13 per unit of volatility. If you would invest 1,096 in GraniteShares HIPS High on August 27, 2024 and sell it today you would earn a total of 220.00 from holding GraniteShares HIPS High or generate 20.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tidal Trust II vs. GraniteShares HIPS High
Performance |
| Timeline |
| Tidal Trust II |
| GraniteShares HIPS High |
Tidal Trust and GraniteShares HIPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and GraniteShares HIPS
The main advantage of trading using opposite Tidal Trust and GraniteShares HIPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust position performs unexpectedly, GraniteShares HIPS 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 HIPS will offset losses from the drop in GraniteShares HIPS's long position.| Tidal Trust vs. Tidal Trust II | Tidal Trust vs. First Trust Dorsey | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Direxion Daily META |
| GraniteShares HIPS vs. Amplify BlackSwan Growth | GraniteShares HIPS vs. RPAR Risk Parity | GraniteShares HIPS vs. WisdomTree International Efficient | GraniteShares HIPS vs. iMGP DBi Managed |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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