Correlation Between GraniteShares 15x and RBB Fund
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and RBB Fund 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 RBB Fund 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 The RBB Fund, you can compare the effects of market volatilities on GraniteShares 15x and RBB Fund 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 RBB Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and RBB Fund.
Diversification Opportunities for GraniteShares 15x and RBB Fund
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and RBB is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and The RBB Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBB Fund 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 RBB Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBB Fund has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and RBB Fund go up and down completely randomly.
Pair Corralation between GraniteShares 15x and RBB Fund
Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the RBB Fund. In addition to that, GraniteShares 15x is 4.6 times more volatile than The RBB Fund. It trades about -0.06 of its total potential returns per unit of risk. The RBB Fund is currently generating about 0.37 per unit of volatility. If you would invest 3,031 in The RBB Fund on August 29, 2024 and sell it today you would earn a total of 285.00 from holding The RBB Fund or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. The RBB Fund
Performance |
| Timeline |
| GraniteShares 15x Long |
| RBB Fund |
GraniteShares 15x and RBB Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and RBB Fund
The main advantage of trading using opposite GraniteShares 15x and RBB Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, RBB Fund 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 RBB Fund will offset losses from the drop in RBB Fund'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 |
| RBB Fund vs. BlackRock Future Health | RBB Fund vs. Global X Thematic | RBB Fund vs. Aquagold International | RBB Fund vs. Morningstar Unconstrained Allocation |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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