Correlation Between PGIM Ultra and GraniteShares 15x
Can any of the company-specific risk be diversified away by investing in both PGIM Ultra 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 PGIM Ultra and GraniteShares 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM Ultra Short and GraniteShares 15x Long, you can compare the effects of market volatilities on PGIM Ultra 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 PGIM Ultra with a short position of GraniteShares 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM Ultra and GraniteShares 15x.
Diversification Opportunities for PGIM Ultra and GraniteShares 15x
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PGIM and GraniteShares is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PGIM Ultra Short 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 PGIM Ultra 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 PGIM Ultra Short 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 PGIM Ultra i.e., PGIM Ultra and GraniteShares 15x go up and down completely randomly.
Pair Corralation between PGIM Ultra and GraniteShares 15x
Given the investment horizon of 90 days PGIM Ultra Short is expected to generate 0.0 times more return on investment than GraniteShares 15x. However, PGIM Ultra Short is 513.27 times less risky than GraniteShares 15x. It trades about 0.91 of its potential returns per unit of risk. GraniteShares 15x Long is currently generating about -0.11 per unit of risk. If you would invest 4,956 in PGIM Ultra Short on November 3, 2024 and sell it today you would earn a total of 19.00 from holding PGIM Ultra Short or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGIM Ultra Short vs. GraniteShares 15x Long
Performance |
| Timeline |
| PGIM Ultra Short |
| GraniteShares 15x Long |
PGIM Ultra and GraniteShares 15x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM Ultra and GraniteShares 15x
The main advantage of trading using opposite PGIM Ultra and GraniteShares 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM Ultra 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.| PGIM Ultra vs. Janus Henderson Short | PGIM Ultra vs. iShares Ultra Short Term | PGIM Ultra vs. SPDR Bloomberg Investment | PGIM Ultra vs. Invesco Ultra Short |
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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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