Correlation Between GraniteShares 125x and FT Cboe
Can any of the company-specific risk be diversified away by investing in both GraniteShares 125x and FT Cboe 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 FT Cboe 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 FT Cboe Vest, you can compare the effects of market volatilities on GraniteShares 125x and FT Cboe 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 FT Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 125x and FT Cboe.
Diversification Opportunities for GraniteShares 125x and FT Cboe
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GraniteShares and IGLD is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 125x Long and FT Cboe Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Cboe Vest 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 FT Cboe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Cboe Vest has no effect on the direction of GraniteShares 125x i.e., GraniteShares 125x and FT Cboe go up and down completely randomly.
Pair Corralation between GraniteShares 125x and FT Cboe
Considering the 90-day investment horizon GraniteShares 125x Long is expected to under-perform the FT Cboe. In addition to that, GraniteShares 125x is 5.18 times more volatile than FT Cboe Vest. It trades about -0.04 of its total potential returns per unit of risk. FT Cboe Vest is currently generating about 0.3 per unit of volatility. If you would invest 1,882 in FT Cboe Vest on November 4, 2024 and sell it today you would earn a total of 71.00 from holding FT Cboe Vest or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 125x Long vs. FT Cboe Vest
Performance |
| Timeline |
| GraniteShares 125x Long |
| FT Cboe Vest |
GraniteShares 125x and FT Cboe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 125x and FT Cboe
The main advantage of trading using opposite GraniteShares 125x and FT Cboe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 125x position performs unexpectedly, FT Cboe 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 FT Cboe will offset losses from the drop in FT Cboe's long position.| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |