Correlation Between GraniteShares 15x and Schwab Long
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and Schwab Long 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 Schwab Long 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 Schwab Long Term Treasury, you can compare the effects of market volatilities on GraniteShares 15x and Schwab Long 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 Schwab Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and Schwab Long.
Diversification Opportunities for GraniteShares 15x and Schwab Long
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and Schwab is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Schwab Long Term Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab Long Term 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 Schwab Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab Long Term has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Schwab Long go up and down completely randomly.
Pair Corralation between GraniteShares 15x and Schwab Long
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 5.94 times more return on investment than Schwab Long. However, GraniteShares 15x is 5.94 times more volatile than Schwab Long Term Treasury. It trades about 0.13 of its potential returns per unit of risk. Schwab Long Term Treasury is currently generating about -0.01 per unit of risk. If you would invest 391.00 in GraniteShares 15x Long on August 29, 2024 and sell it today you would earn a total of 6,507 from holding GraniteShares 15x Long or generate 1664.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.4% |
| Values | Daily Returns |
GraniteShares 15x Long vs. Schwab Long Term Treasury
Performance |
| Timeline |
| GraniteShares 15x Long |
| Schwab Long Term |
GraniteShares 15x and Schwab Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and Schwab Long
The main advantage of trading using opposite GraniteShares 15x and Schwab Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, Schwab Long 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 Schwab Long will offset losses from the drop in Schwab Long'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 |
| Schwab Long vs. Schwab 1 5 Year | Schwab Long vs. Schwab 5 10 Year | Schwab Long vs. Schwab Intermediate Term Treasury | Schwab Long vs. Schwab Short Term Treasury |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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