Correlation Between Tema ETF and GraniteShares 125x
Can any of the company-specific risk be diversified away by investing in both Tema ETF and GraniteShares 125x 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 Tema ETF and GraniteShares 125x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema ETF Trust and GraniteShares 125x Long, you can compare the effects of market volatilities on Tema ETF and GraniteShares 125x 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 Tema ETF with a short position of GraniteShares 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and GraniteShares 125x.
Diversification Opportunities for Tema ETF and GraniteShares 125x
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tema and GraniteShares is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust and GraniteShares 125x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 125x Long and Tema ETF 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 Tema ETF Trust are associated (or correlated) with GraniteShares 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 125x Long has no effect on the direction of Tema ETF i.e., Tema ETF and GraniteShares 125x go up and down completely randomly.
Pair Corralation between Tema ETF and GraniteShares 125x
Considering the 90-day investment horizon Tema ETF Trust is expected to generate 0.29 times more return on investment than GraniteShares 125x. However, Tema ETF Trust is 3.5 times less risky than GraniteShares 125x. It trades about 0.59 of its potential returns per unit of risk. GraniteShares 125x Long is currently generating about -0.04 per unit of risk. If you would invest 2,156 in Tema ETF Trust on November 4, 2024 and sell it today you would earn a total of 246.00 from holding Tema ETF Trust or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tema ETF Trust vs. GraniteShares 125x Long
Performance |
| Timeline |
| Tema ETF Trust |
| GraniteShares 125x Long |
Tema ETF and GraniteShares 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema ETF and GraniteShares 125x
The main advantage of trading using opposite Tema ETF and GraniteShares 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema ETF position performs unexpectedly, GraniteShares 125x 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 125x will offset losses from the drop in GraniteShares 125x's long position.| Tema ETF vs. Smith Nephew SNATS | Tema ETF vs. Fresenius Medical Care | Tema ETF vs. Fomento Economico Mexicano | Tema ETF vs. The Cooper Companies, |
| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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