Correlation Between GraniteShares 15x and FT Cboe
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and FT Cboe 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 Cboe 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 Cboe Vest, you can compare the effects of market volatilities on GraniteShares 15x and FT Cboe 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 Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and FT Cboe.
Diversification Opportunities for GraniteShares 15x and FT Cboe
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GraniteShares and RDVI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and FT Cboe Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Cboe Vest 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 Cboe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Cboe Vest has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and FT Cboe go up and down completely randomly.
Pair Corralation between GraniteShares 15x and FT Cboe
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 7.37 times more return on investment than FT Cboe. However, GraniteShares 15x is 7.37 times more volatile than FT Cboe Vest. It trades about 0.04 of its potential returns per unit of risk. FT Cboe Vest is currently generating about 0.06 per unit of risk. If you would invest 3,818 in GraniteShares 15x Long on December 4, 2024 and sell it today you would earn a total of 436.00 from holding GraniteShares 15x Long or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. FT Cboe Vest
Performance |
| Timeline |
| GraniteShares 15x Long |
| FT Cboe Vest |
GraniteShares 15x and FT Cboe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and FT Cboe
The main advantage of trading using opposite GraniteShares 15x and FT Cboe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, FT Cboe 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 Cboe will offset losses from the drop in FT Cboe'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 Cboe vs. Strategy Shares | FT Cboe vs. Freedom Day Dividend | FT Cboe vs. Franklin Templeton ETF | FT Cboe vs. iShares MSCI China |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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