Correlation Between Bank Of Montreal and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Bank Of Montreal 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 Bank Of Montreal and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Of Montreal and GraniteShares 2x Long, you can compare the effects of market volatilities on Bank Of Montreal 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 Bank Of Montreal with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Of Montreal and GraniteShares.
Diversification Opportunities for Bank Of Montreal and GraniteShares
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and GraniteShares is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of Montreal and GraniteShares 2x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 2x Long and Bank Of Montreal 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 Bank Of Montreal 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 2x Long has no effect on the direction of Bank Of Montreal i.e., Bank Of Montreal and GraniteShares go up and down completely randomly.
Pair Corralation between Bank Of Montreal and GraniteShares
Given the investment horizon of 90 days Bank Of Montreal is expected to under-perform the GraniteShares. But the etf apears to be less risky and, when comparing its historical volatility, Bank Of Montreal is 1.67 times less risky than GraniteShares. The etf trades about -0.12 of its potential returns per unit of risk. The GraniteShares 2x Long is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,477 in GraniteShares 2x Long on September 3, 2024 and sell it today you would lose (123.00) from holding GraniteShares 2x Long or give up 4.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.77% |
| Values | Daily Returns |
Bank Of Montreal vs. GraniteShares 2x Long
Performance |
| Timeline |
| Bank Of Montreal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GraniteShares 2x Long |
Bank Of Montreal and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Of Montreal and GraniteShares
The main advantage of trading using opposite Bank Of Montreal and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Of Montreal 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.| Bank Of Montreal vs. MicroSectors FANG Index | Bank Of Montreal vs. MicroSectors Solactive FANG | Bank Of Montreal vs. Direxion Daily Regional |
| GraniteShares vs. Tidal Trust II | GraniteShares vs. Tidal Trust II | GraniteShares vs. Direxion Daily META | GraniteShares vs. Direxion Daily META |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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