Correlation Between GraniteShares 15x and Mairs Power
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and Mairs Power 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 Mairs Power 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 Mairs Power Minnesota, you can compare the effects of market volatilities on GraniteShares 15x and Mairs Power 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 Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and Mairs Power.
Diversification Opportunities for GraniteShares 15x and Mairs Power
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and Mairs is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Mairs Power Minnesota in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Minnesota 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 Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Minnesota has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Mairs Power go up and down completely randomly.
Pair Corralation between GraniteShares 15x and Mairs Power
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 17.34 times more return on investment than Mairs Power. However, GraniteShares 15x is 17.34 times more volatile than Mairs Power Minnesota. It trades about 0.12 of its potential returns per unit of risk. Mairs Power Minnesota is currently generating about -0.05 per unit of risk. If you would invest 5,819 in GraniteShares 15x Long on August 29, 2024 and sell it today you would earn a total of 1,243 from holding GraniteShares 15x Long or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. Mairs Power Minnesota
Performance |
| Timeline |
| GraniteShares 15x Long |
| Mairs Power Minnesota |
GraniteShares 15x and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and Mairs Power
The main advantage of trading using opposite GraniteShares 15x and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power'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 |
| Mairs Power vs. BlackRock Intermediate Muni | Mairs Power vs. IQ MacKay Municipal | Mairs Power vs. Overlay Shares Municipal | Mairs Power vs. IQ MacKay Municipal |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |