Correlation Between GraniteShares 125x and BNY Mellon
Can any of the company-specific risk be diversified away by investing in both GraniteShares 125x and BNY Mellon 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 125x and BNY Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 125x Long and BNY Mellon ETF, you can compare the effects of market volatilities on GraniteShares 125x and BNY Mellon 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 125x with a short position of BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 125x and BNY Mellon.
Diversification Opportunities for GraniteShares 125x and BNY Mellon
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and BNY is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 125x Long and BNY Mellon ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon ETF and GraniteShares 125x 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 125x Long are associated (or correlated) with BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon ETF has no effect on the direction of GraniteShares 125x i.e., GraniteShares 125x and BNY Mellon go up and down completely randomly.
Pair Corralation between GraniteShares 125x and BNY Mellon
Considering the 90-day investment horizon GraniteShares 125x is expected to generate 1.61 times less return on investment than BNY Mellon. In addition to that, GraniteShares 125x is 8.88 times more volatile than BNY Mellon ETF. It trades about 0.03 of its total potential returns per unit of risk. BNY Mellon ETF is currently generating about 0.48 per unit of volatility. If you would invest 2,980 in BNY Mellon ETF on October 21, 2024 and sell it today you would earn a total of 163.00 from holding BNY Mellon ETF or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 125x Long vs. BNY Mellon ETF
Performance |
| Timeline |
| GraniteShares 125x Long |
| BNY Mellon ETF |
GraniteShares 125x and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 125x and BNY Mellon
The main advantage of trading using opposite GraniteShares 125x and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 125x position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon's long position.| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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