Correlation Between GraniteShares 15x and Virtus ETF
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and Virtus ETF 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 Virtus ETF 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 Virtus ETF Trust, you can compare the effects of market volatilities on GraniteShares 15x and Virtus ETF 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 Virtus ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and Virtus ETF.
Diversification Opportunities for GraniteShares 15x and Virtus ETF
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and Virtus is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Virtus ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus ETF Trust 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 Virtus ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus ETF Trust has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Virtus ETF go up and down completely randomly.
Pair Corralation between GraniteShares 15x and Virtus ETF
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 30.95 times more return on investment than Virtus ETF. However, GraniteShares 15x is 30.95 times more volatile than Virtus ETF Trust. It trades about 0.13 of its potential returns per unit of risk. Virtus ETF Trust is currently generating about 0.21 per unit of risk. If you would invest 391.00 in GraniteShares 15x Long on August 27, 2024 and sell it today you would earn a total of 7,218 from holding GraniteShares 15x Long or generate 1846.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.99% |
| Values | Daily Returns |
GraniteShares 15x Long vs. Virtus ETF Trust
Performance |
| Timeline |
| GraniteShares 15x Long |
| Virtus ETF Trust |
GraniteShares 15x and Virtus ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and Virtus ETF
The main advantage of trading using opposite GraniteShares 15x and Virtus ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, Virtus ETF 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 Virtus ETF will offset losses from the drop in Virtus ETF'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 |
| Virtus ETF vs. Franklin Liberty Senior | Virtus ETF vs. Virtus Newfleet Multi Sector | Virtus ETF vs. Pacer Pacific Asset | Virtus ETF vs. JPMorgan USD Emerging |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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