Correlation Between GraniteShares 15x and Impact Shares
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and Impact Shares 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 Impact Shares 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 Impact Shares YWCA, you can compare the effects of market volatilities on GraniteShares 15x and Impact Shares 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 Impact Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and Impact Shares.
Diversification Opportunities for GraniteShares 15x and Impact Shares
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and Impact is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Impact Shares YWCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Shares YWCA 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 Impact Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Shares YWCA has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Impact Shares go up and down completely randomly.
Pair Corralation between GraniteShares 15x and Impact Shares
Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the Impact Shares. In addition to that, GraniteShares 15x is 6.39 times more volatile than Impact Shares YWCA. It trades about -0.05 of its total potential returns per unit of risk. Impact Shares YWCA is currently generating about 0.22 per unit of volatility. If you would invest 3,869 in Impact Shares YWCA on August 31, 2024 and sell it today you would earn a total of 147.00 from holding Impact Shares YWCA or generate 3.8% 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. Impact Shares YWCA
Performance |
| Timeline |
| GraniteShares 15x Long |
| Impact Shares YWCA |
GraniteShares 15x and Impact Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and Impact Shares
The main advantage of trading using opposite GraniteShares 15x and Impact Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, Impact Shares 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 Impact Shares will offset losses from the drop in Impact Shares' 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 |
| Impact Shares vs. Salon City | Impact Shares vs. Innovator ETFs Trust | Impact Shares vs. Impact Shares NAACP | Impact Shares vs. Searchlight Minerals Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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