Correlation Between NYSE Composite and GraniteShares 15x
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and GraniteShares 15x 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 NYSE Composite and GraniteShares 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and GraniteShares 15x Long, you can compare the effects of market volatilities on NYSE Composite and GraniteShares 15x 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 NYSE Composite with a short position of GraniteShares 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and GraniteShares 15x.
Diversification Opportunities for NYSE Composite and GraniteShares 15x
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and GraniteShares is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and GraniteShares 15x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 15x Long and NYSE Composite 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 NYSE Composite are associated (or correlated) with GraniteShares 15x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 15x Long has no effect on the direction of NYSE Composite i.e., NYSE Composite and GraniteShares 15x go up and down completely randomly.
Pair Corralation between NYSE Composite and GraniteShares 15x
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.2 times more return on investment than GraniteShares 15x. However, NYSE Composite is 5.01 times less risky than GraniteShares 15x. It trades about 0.12 of its potential returns per unit of risk. GraniteShares 15x Long is currently generating about -0.01 per unit of risk. If you would invest 1,950,655 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 61,690 from holding NYSE Composite or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. GraniteShares 15x Long
Performance |
| Timeline |
NYSE Composite and GraniteShares 15x Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
GraniteShares 15x Long
Pair trading matchups for GraniteShares 15x
Pair Trading with NYSE Composite and GraniteShares 15x
The main advantage of trading using opposite NYSE Composite and GraniteShares 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, GraniteShares 15x 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 GraniteShares 15x will offset losses from the drop in GraniteShares 15x's long position.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology Holdings |
| GraniteShares 15x vs. Direxion Daily SP | GraniteShares 15x vs. Direxion Daily Semiconductor | GraniteShares 15x vs. Direxion Daily Semiconductor |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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