Correlation Between Fidelity Sustainable and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Fidelity Sustainable 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 Fidelity Sustainable and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sustainable EUR and GraniteShares 3x Short, you can compare the effects of market volatilities on Fidelity Sustainable 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 Fidelity Sustainable with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sustainable and GraniteShares.
Diversification Opportunities for Fidelity Sustainable and GraniteShares
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and GraniteShares is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sustainable EUR and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short and Fidelity Sustainable 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 Fidelity Sustainable EUR 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 Short has no effect on the direction of Fidelity Sustainable i.e., Fidelity Sustainable and GraniteShares go up and down completely randomly.
Pair Corralation between Fidelity Sustainable and GraniteShares
Assuming the 90 days trading horizon Fidelity Sustainable is expected to generate 15.57 times less return on investment than GraniteShares. But when comparing it to its historical volatility, Fidelity Sustainable EUR is 46.1 times less risky than GraniteShares. It trades about 0.08 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 64,850 in GraniteShares 3x Short on January 26, 2025 and sell it today you would lose (19,735) from holding GraniteShares 3x Short or give up 30.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Fidelity Sustainable EUR vs. GraniteShares 3x Short
Performance |
| Timeline |
| Fidelity Sustainable EUR |
| GraniteShares 3x Short |
Fidelity Sustainable and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sustainable and GraniteShares
The main advantage of trading using opposite Fidelity Sustainable and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sustainable 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.| Fidelity Sustainable vs. Lyxor 10Y Inflation | Fidelity Sustainable vs. Leverage Shares 2x | Fidelity Sustainable vs. GraniteShares 3x Long | Fidelity Sustainable vs. WisdomTree EURO STOXX |
| GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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