Correlation Between GraniteShares 15x and GraniteShares 175x
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and GraniteShares 175x 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 15x and GraniteShares 175x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 15x Long and GraniteShares 175x Long, you can compare the effects of market volatilities on GraniteShares 15x and GraniteShares 175x 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 15x with a short position of GraniteShares 175x. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and GraniteShares 175x.
Diversification Opportunities for GraniteShares 15x and GraniteShares 175x
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and GraniteShares is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and GraniteShares 175x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 175x Long and GraniteShares 15x 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 15x Long are associated (or correlated) with GraniteShares 175x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 175x Long has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and GraniteShares 175x go up and down completely randomly.
Pair Corralation between GraniteShares 15x and GraniteShares 175x
Considering the 90-day investment horizon GraniteShares 15x Long is expected to generate 0.63 times more return on investment than GraniteShares 175x. However, GraniteShares 15x Long is 1.58 times less risky than GraniteShares 175x. It trades about 0.08 of its potential returns per unit of risk. GraniteShares 175x Long is currently generating about -0.25 per unit of risk. If you would invest 3,090 in GraniteShares 15x Long on September 3, 2024 and sell it today you would earn a total of 125.00 from holding GraniteShares 15x Long or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. GraniteShares 175x Long
Performance |
| Timeline |
| GraniteShares 15x Long |
| GraniteShares 175x Long |
GraniteShares 15x and GraniteShares 175x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and GraniteShares 175x
The main advantage of trading using opposite GraniteShares 15x and GraniteShares 175x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, GraniteShares 175x 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 175x will offset losses from the drop in GraniteShares 175x's long position.| GraniteShares 15x vs. GraniteShares 15x Long | GraniteShares 15x vs. Direxion Daily GOOGL | GraniteShares 15x vs. Direxion Daily MSFT | GraniteShares 15x vs. Direxion Daily AMZN |
| GraniteShares 175x vs. ProShares Ultra SP500 | GraniteShares 175x vs. Direxion Daily SP500 | GraniteShares 175x vs. ProShares Ultra QQQ | GraniteShares 175x vs. Direxion Daily SP |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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