Correlation Between Global X and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Global X and GraniteShares 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 Global X and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Uranium and GraniteShares 3x Short, you can compare the effects of market volatilities on Global X and GraniteShares 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 Global X with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and GraniteShares.
Diversification Opportunities for Global X and GraniteShares
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and GraniteShares is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Global X Uranium and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short and Global X 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 Global X Uranium are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Global X i.e., Global X and GraniteShares go up and down completely randomly.
Pair Corralation between Global X and GraniteShares
Assuming the 90 days trading horizon Global X Uranium is expected to generate 0.2 times more return on investment than GraniteShares. However, Global X Uranium is 4.93 times less risky than GraniteShares. It trades about -0.23 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.09 per unit of risk. If you would invest 1,611 in Global X Uranium on November 28, 2024 and sell it today you would lose (170.00) from holding Global X Uranium or give up 10.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Uranium vs. GraniteShares 3x Short
Performance |
| Timeline |
| Global X Uranium |
| GraniteShares 3x Short |
Global X and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and GraniteShares
The main advantage of trading using opposite Global X and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, GraniteShares 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 will offset losses from the drop in GraniteShares' long position.| Global X vs. Global X Data | Global X vs. Global X Copper | Global X vs. Global X ETFs | Global X vs. Global X Infrastructure |
| GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Short |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |