Correlation Between GraniteShares 15x and American Century
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and American Century 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 American Century 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 American Century Short, you can compare the effects of market volatilities on GraniteShares 15x and American Century 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 American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and American Century.
Diversification Opportunities for GraniteShares 15x and American Century
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and American is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and American Century Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century Short 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 American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century Short has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and American Century go up and down completely randomly.
Pair Corralation between GraniteShares 15x and American Century
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 45.34 times more return on investment than American Century. However, GraniteShares 15x is 45.34 times more volatile than American Century Short. It trades about 0.08 of its potential returns per unit of risk. American Century Short is currently generating about 0.15 per unit of risk. If you would invest 6,776 in GraniteShares 15x Long on September 1, 2024 and sell it today you would earn a total of 413.00 from holding GraniteShares 15x Long or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GraniteShares 15x Long vs. American Century Short
Performance |
| Timeline |
| GraniteShares 15x Long |
| American Century Short |
GraniteShares 15x and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and American Century
The main advantage of trading using opposite GraniteShares 15x and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |