Correlation Between GraniteShares 15x and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and SPDR SSGA 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 SPDR SSGA 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 SPDR SSGA Fixed, you can compare the effects of market volatilities on GraniteShares 15x and SPDR SSGA 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 SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and SPDR SSGA.
Diversification Opportunities for GraniteShares 15x and SPDR SSGA
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between GraniteShares and SPDR is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and SPDR SSGA Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Fixed 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 SPDR SSGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSGA Fixed has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and SPDR SSGA go up and down completely randomly.
Pair Corralation between GraniteShares 15x and SPDR SSGA
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 21.58 times more return on investment than SPDR SSGA. However, GraniteShares 15x is 21.58 times more volatile than SPDR SSGA Fixed. It trades about 0.01 of its potential returns per unit of risk. SPDR SSGA Fixed is currently generating about 0.09 per unit of risk. If you would invest 7,030 in GraniteShares 15x Long on November 28, 2024 and sell it today you would lose (1,680) from holding GraniteShares 15x Long or give up 23.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. SPDR SSGA Fixed
Performance |
| Timeline |
| GraniteShares 15x Long |
| SPDR SSGA Fixed |
GraniteShares 15x and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and SPDR SSGA
The main advantage of trading using opposite GraniteShares 15x and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, SPDR SSGA 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 SPDR SSGA will offset losses from the drop in SPDR SSGA'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 |
| SPDR SSGA vs. SPDR SSGA Sector | SPDR SSGA vs. SPDR DoubleLine Emerging | SPDR SSGA vs. SPDR DoubleLine Short | SPDR SSGA vs. SPDR SSgA Ultra |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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