Correlation Between GraniteShares 15x and BlackRock Equity
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and BlackRock Equity 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 BlackRock Equity 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 BlackRock Equity Factor, you can compare the effects of market volatilities on GraniteShares 15x and BlackRock Equity 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 BlackRock Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and BlackRock Equity.
Diversification Opportunities for GraniteShares 15x and BlackRock Equity
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GraniteShares and BlackRock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and BlackRock Equity Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Equity Factor 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 BlackRock Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Equity Factor has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and BlackRock Equity go up and down completely randomly.
Pair Corralation between GraniteShares 15x and BlackRock Equity
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 6.57 times more return on investment than BlackRock Equity. However, GraniteShares 15x is 6.57 times more volatile than BlackRock Equity Factor. It trades about 0.08 of its potential returns per unit of risk. BlackRock Equity Factor is currently generating about 0.4 per unit of risk. If you would invest 6,776 in GraniteShares 15x Long on September 1, 2024 and sell it today you would earn a total of 413.00 from holding GraniteShares 15x Long or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
GraniteShares 15x Long vs. BlackRock Equity Factor
Performance |
| Timeline |
| GraniteShares 15x Long |
| BlackRock Equity Factor |
GraniteShares 15x and BlackRock Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and BlackRock Equity
The main advantage of trading using opposite GraniteShares 15x and BlackRock Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, BlackRock Equity 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 BlackRock Equity will offset losses from the drop in BlackRock Equity's long position.| GraniteShares 15x vs. Direxion Daily MSFT | GraniteShares 15x vs. Direxion Daily GOOGL | GraniteShares 15x vs. AXS 125X NVDA | GraniteShares 15x vs. Direxion Shares ETF |
| BlackRock Equity vs. iShares Focused Value | BlackRock Equity vs. SPDR SSGA Sector | BlackRock Equity vs. iShares Equity Factor | BlackRock Equity vs. iShares MSCI USA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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