Correlation Between NYSE Composite and GraniteShares Platinum
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and GraniteShares Platinum 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 Platinum 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 Platinum Trust, you can compare the effects of market volatilities on NYSE Composite and GraniteShares Platinum 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 Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and GraniteShares Platinum.
Diversification Opportunities for NYSE Composite and GraniteShares Platinum
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and GraniteShares is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and GraniteShares Platinum Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares Platinum 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 Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares Platinum has no effect on the direction of NYSE Composite i.e., NYSE Composite and GraniteShares Platinum go up and down completely randomly.
Pair Corralation between NYSE Composite and GraniteShares Platinum
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.45 times more return on investment than GraniteShares Platinum. However, NYSE Composite is 2.23 times less risky than GraniteShares Platinum. It trades about 0.11 of its potential returns per unit of risk. GraniteShares Platinum Trust is currently generating about 0.0 per unit of risk. If you would invest 1,550,264 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 476,940 from holding NYSE Composite or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
NYSE Composite vs. GraniteShares Platinum Trust
Performance |
| Timeline |
NYSE Composite and GraniteShares Platinum Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
GraniteShares Platinum Trust
Pair trading matchups for GraniteShares Platinum
Pair Trading with NYSE Composite and GraniteShares Platinum
The main advantage of trading using opposite NYSE Composite and GraniteShares Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, GraniteShares Platinum 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 Platinum will offset losses from the drop in GraniteShares Platinum's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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