Correlation Between GraniteShares 15x and SEI Exchange
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and SEI Exchange 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 SEI Exchange 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 SEI Exchange Traded, you can compare the effects of market volatilities on GraniteShares 15x and SEI Exchange 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 SEI Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and SEI Exchange.
Diversification Opportunities for GraniteShares 15x and SEI Exchange
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and SEI is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and SEI Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEI Exchange Traded 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 SEI Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEI Exchange Traded has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and SEI Exchange go up and down completely randomly.
Pair Corralation between GraniteShares 15x and SEI Exchange
Given the investment horizon of 90 days GraniteShares 15x is expected to generate 1.33 times less return on investment than SEI Exchange. In addition to that, GraniteShares 15x is 7.52 times more volatile than SEI Exchange Traded. It trades about 0.04 of its total potential returns per unit of risk. SEI Exchange Traded is currently generating about 0.44 per unit of volatility. If you would invest 2,916 in SEI Exchange Traded on September 2, 2024 and sell it today you would earn a total of 171.00 from holding SEI Exchange Traded or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. SEI Exchange Traded
Performance |
| Timeline |
| GraniteShares 15x Long |
| SEI Exchange Traded |
GraniteShares 15x and SEI Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and SEI Exchange
The main advantage of trading using opposite GraniteShares 15x and SEI Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, SEI Exchange 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 SEI Exchange will offset losses from the drop in SEI Exchange'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 |
| SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. SEI Exchange Traded | SEI Exchange vs. Listed Funds Trust |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Positions Ratings 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 | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |