Correlation Between Vanguard Small and GraniteShares 175x
Can any of the company-specific risk be diversified away by investing in both Vanguard Small and GraniteShares 175x 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 Vanguard Small and GraniteShares 175x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Small Cap Index and GraniteShares 175x Long, you can compare the effects of market volatilities on Vanguard Small and GraniteShares 175x 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 Vanguard Small with a short position of GraniteShares 175x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small and GraniteShares 175x.
Diversification Opportunities for Vanguard Small and GraniteShares 175x
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanguard and GraniteShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Index and GraniteShares 175x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 175x Long and Vanguard Small 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 Vanguard Small Cap Index are associated (or correlated) with GraniteShares 175x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 175x Long has no effect on the direction of Vanguard Small i.e., Vanguard Small and GraniteShares 175x go up and down completely randomly.
Pair Corralation between Vanguard Small and GraniteShares 175x
Allowing for the 90-day total investment horizon Vanguard Small is expected to generate 3.83 times less return on investment than GraniteShares 175x. But when comparing it to its historical volatility, Vanguard Small Cap Index is 7.22 times less risky than GraniteShares 175x. It trades about 0.11 of its potential returns per unit of risk. GraniteShares 175x Long is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,448 in GraniteShares 175x Long on September 4, 2024 and sell it today you would earn a total of 1,082 from holding GraniteShares 175x Long or generate 44.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Small Cap Index vs. GraniteShares 175x Long
Performance |
| Timeline |
| Vanguard Small Cap |
| GraniteShares 175x Long |
Vanguard Small and GraniteShares 175x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Small and GraniteShares 175x
The main advantage of trading using opposite Vanguard Small and GraniteShares 175x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Small position performs unexpectedly, GraniteShares 175x 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 175x will offset losses from the drop in GraniteShares 175x's long position.| Vanguard Small vs. Invesco DWA Emerging | Vanguard Small vs. SCOR PK | Vanguard Small vs. HUMANA INC | Vanguard Small vs. Aquagold International |
| GraniteShares 175x vs. Tidal Trust II | GraniteShares 175x vs. Tidal Trust II | GraniteShares 175x vs. Direxion Daily META | GraniteShares 175x vs. Direxion Daily META |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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