Correlation Between GraniteShares HIPS and Saba Closed

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Can any of the company-specific risk be diversified away by investing in both GraniteShares HIPS and Saba Closed 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 HIPS and Saba Closed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares HIPS High and Saba Closed End Funds, you can compare the effects of market volatilities on GraniteShares HIPS and Saba Closed 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 HIPS with a short position of Saba Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares HIPS and Saba Closed.

Diversification Opportunities for GraniteShares HIPS and Saba Closed

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between GraniteShares and Saba is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares HIPS High and Saba Closed End Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Closed End and GraniteShares HIPS 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 HIPS High are associated (or correlated) with Saba Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Closed End has no effect on the direction of GraniteShares HIPS i.e., GraniteShares HIPS and Saba Closed go up and down completely randomly.

Pair Corralation between GraniteShares HIPS and Saba Closed

Given the investment horizon of 90 days GraniteShares HIPS High is expected to generate 0.66 times more return on investment than Saba Closed. However, GraniteShares HIPS High is 1.51 times less risky than Saba Closed. It trades about 0.48 of its potential returns per unit of risk. Saba Closed End Funds is currently generating about 0.1 per unit of risk. If you would invest  1,258  in GraniteShares HIPS High on August 30, 2024 and sell it today you would earn a total of  71.00  from holding GraniteShares HIPS High or generate 5.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

GraniteShares HIPS High  vs.  Saba Closed End Funds

 Performance 
       Timeline  
GraniteShares HIPS High 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares HIPS High are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, GraniteShares HIPS is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
Saba Closed End 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Saba Closed End Funds are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Saba Closed is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

GraniteShares HIPS and Saba Closed Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GraniteShares HIPS and Saba Closed

The main advantage of trading using opposite GraniteShares HIPS and Saba Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares HIPS position performs unexpectedly, Saba Closed 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 Saba Closed will offset losses from the drop in Saba Closed's long position.
The idea behind GraniteShares HIPS High and Saba Closed End Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.

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