Correlation Between GraniteShares 15x and United States
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and United States 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 United States 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 United States Commodity, you can compare the effects of market volatilities on GraniteShares 15x and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and United States.
Diversification Opportunities for GraniteShares 15x and United States
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and United is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and United States Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Commodity 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Commodity has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and United States go up and down completely randomly.
Pair Corralation between GraniteShares 15x and United States
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 6.72 times more return on investment than United States. However, GraniteShares 15x is 6.72 times more volatile than United States Commodity. It trades about 0.14 of its potential returns per unit of risk. United States Commodity is currently generating about 0.04 per unit of risk. If you would invest 337.00 in GraniteShares 15x Long on September 3, 2024 and sell it today you would earn a total of 6,852 from holding GraniteShares 15x Long or generate 2033.23% 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. United States Commodity
Performance |
| Timeline |
| GraniteShares 15x Long |
| United States Commodity |
GraniteShares 15x and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and United States
The main advantage of trading using opposite GraniteShares 15x and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' 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 |
| United States vs. KraneShares Bosera MSCI | United States vs. WisdomTree Continuous Commodity | United States vs. iPath Bloomberg Commodity | United States vs. Cambria Shareholder Yield |
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.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |