Correlation Between GraniteShares 15x and FundX Aggressive
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and FundX Aggressive 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 FundX Aggressive 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 FundX Aggressive ETF, you can compare the effects of market volatilities on GraniteShares 15x and FundX Aggressive 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 FundX Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and FundX Aggressive.
Diversification Opportunities for GraniteShares 15x and FundX Aggressive
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between GraniteShares and FundX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and FundX Aggressive ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FundX Aggressive ETF 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 FundX Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FundX Aggressive ETF has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and FundX Aggressive go up and down completely randomly.
Pair Corralation between GraniteShares 15x and FundX Aggressive
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 7.3 times more return on investment than FundX Aggressive. However, GraniteShares 15x is 7.3 times more volatile than FundX Aggressive ETF. It trades about 0.01 of its potential returns per unit of risk. FundX Aggressive ETF is currently generating about -0.24 per unit of risk. If you would invest 5,282 in GraniteShares 15x Long on December 1, 2024 and sell it today you would lose (138.00) from holding GraniteShares 15x Long or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GraniteShares 15x Long vs. FundX Aggressive ETF
Performance |
| Timeline |
| GraniteShares 15x Long |
| FundX Aggressive ETF |
GraniteShares 15x and FundX Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and FundX Aggressive
The main advantage of trading using opposite GraniteShares 15x and FundX Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, FundX Aggressive 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 FundX Aggressive will offset losses from the drop in FundX Aggressive'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 |
| FundX Aggressive vs. Strategy Shares | FundX Aggressive vs. Freedom Day Dividend | FundX Aggressive vs. Franklin Templeton ETF | FundX Aggressive vs. iShares MSCI China |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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