Correlation Between GraniteShares 15x and T REX
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and T REX 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 T REX 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 T REX 2X Long, you can compare the effects of market volatilities on GraniteShares 15x and T REX 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 T REX. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and T REX.
Diversification Opportunities for GraniteShares 15x and T REX
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and NFLU is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and T REX 2X Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T REX 2X 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 T REX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T REX 2X has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and T REX go up and down completely randomly.
Pair Corralation between GraniteShares 15x and T REX
Given the investment horizon of 90 days GraniteShares 15x is expected to generate 3.66 times less return on investment than T REX. In addition to that, GraniteShares 15x is 1.61 times more volatile than T REX 2X Long. It trades about 0.08 of its total potential returns per unit of risk. T REX 2X Long is currently generating about 0.48 per unit of volatility. If you would invest 2,757 in T REX 2X Long on September 1, 2024 and sell it today you would earn a total of 971.00 from holding T REX 2X Long or generate 35.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GraniteShares 15x Long vs. T REX 2X Long
Performance |
| Timeline |
| GraniteShares 15x Long |
| T REX 2X |
GraniteShares 15x and T REX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and T REX
The main advantage of trading using opposite GraniteShares 15x and T REX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, T REX 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 T REX will offset losses from the drop in T REX'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 |
| T REX vs. Tidal Trust II | T REX vs. Tidal Trust II | T REX vs. Direxion Daily META | T REX vs. Direxion Daily META |
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
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |