Correlation Between GraniteShares FAANG and GraniteShares
Can any of the company-specific risk be diversified away by investing in both GraniteShares FAANG and GraniteShares 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 FAANG and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares FAANG ETC and GraniteShares 3x Long, you can compare the effects of market volatilities on GraniteShares FAANG and GraniteShares 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 FAANG with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares FAANG and GraniteShares.
Diversification Opportunities for GraniteShares FAANG and GraniteShares
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and GraniteShares is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares FAANG ETC and GraniteShares 3x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Long and GraniteShares FAANG 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 FAANG ETC are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Long has no effect on the direction of GraniteShares FAANG i.e., GraniteShares FAANG and GraniteShares go up and down completely randomly.
Pair Corralation between GraniteShares FAANG and GraniteShares
Assuming the 90 days trading horizon GraniteShares FAANG is expected to generate 1.49 times less return on investment than GraniteShares. But when comparing it to its historical volatility, GraniteShares FAANG ETC is 5.33 times less risky than GraniteShares. It trades about 0.27 of its potential returns per unit of risk. GraniteShares 3x Long is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,345 in GraniteShares 3x Long on August 24, 2024 and sell it today you would earn a total of 278.00 from holding GraniteShares 3x Long or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares FAANG ETC vs. GraniteShares 3x Long
Performance |
| Timeline |
| GraniteShares FAANG ETC |
| GraniteShares 3x Long |
GraniteShares FAANG and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares FAANG and GraniteShares
The main advantage of trading using opposite GraniteShares FAANG and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares FAANG position performs unexpectedly, GraniteShares 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 will offset losses from the drop in GraniteShares' long position.| GraniteShares FAANG vs. Leverage Shares 3x | GraniteShares FAANG vs. WisdomTree SP 500 | GraniteShares FAANG vs. WisdomTree Silver 3x | GraniteShares FAANG vs. Lyxor 10Y Inflation |
| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |