Correlation Between GraniteShares 15x and FLFR

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Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and FLFR 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 FLFR 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 FLFR, you can compare the effects of market volatilities on GraniteShares 15x and FLFR 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 FLFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and FLFR.

Diversification Opportunities for GraniteShares 15x and FLFR

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GraniteShares and FLFR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and FLFR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLFR 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 FLFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLFR has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and FLFR go up and down completely randomly.

Pair Corralation between GraniteShares 15x and FLFR

If you would invest  7,212  in GraniteShares 15x Long on October 24, 2024 and sell it today you would lose (54.00) from holding GraniteShares 15x Long or give up 0.75% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy5.56%
ValuesDaily Returns

GraniteShares 15x Long  vs.  FLFR

 Performance 
       Timeline  
GraniteShares 15x Long 

Risk-Adjusted Performance

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Over the last 90 days GraniteShares 15x Long has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, GraniteShares 15x is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.
FLFR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days FLFR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, FLFR is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

GraniteShares 15x and FLFR Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GraniteShares 15x and FLFR

The main advantage of trading using opposite GraniteShares 15x and FLFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, FLFR 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 FLFR will offset losses from the drop in FLFR's long position.
The idea behind GraniteShares 15x Long and FLFR 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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