Correlation Between GraniteShares 15x and FT Vest
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and FT Vest 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 FT Vest 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 FT Vest Equity, you can compare the effects of market volatilities on GraniteShares 15x and FT Vest 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 FT Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and FT Vest.
Diversification Opportunities for GraniteShares 15x and FT Vest
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and JULM is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and FT Vest Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest Equity 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 FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Equity has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and FT Vest go up and down completely randomly.
Pair Corralation between GraniteShares 15x and FT Vest
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 34.1 times more return on investment than FT Vest. However, GraniteShares 15x is 34.1 times more volatile than FT Vest Equity. It trades about 0.13 of its potential returns per unit of risk. FT Vest Equity is currently generating about 0.2 per unit of risk. If you would invest 427.00 in GraniteShares 15x Long on October 22, 2024 and sell it today you would earn a total of 6,431 from holding GraniteShares 15x Long or generate 1506.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.8% |
| Values | Daily Returns |
GraniteShares 15x Long vs. FT Vest Equity
Performance |
| Timeline |
| GraniteShares 15x Long |
| FT Vest Equity |
GraniteShares 15x and FT Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and FT Vest
The main advantage of trading using opposite GraniteShares 15x and FT Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, FT Vest 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 FT Vest will offset losses from the drop in FT Vest'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 |
| FT Vest vs. FT Vest Equity | FT Vest vs. Northern Lights | FT Vest vs. Dimensional International High | FT Vest vs. JPMorgan Fundamental Data |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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