Correlation Between GraniteShares ETF and Tuttle Capital

Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Tuttle Capital 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 ETF and Tuttle Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GraniteShares ETF Trust and Tuttle Capital Management, you can compare the effects of market volatilities on GraniteShares ETF and Tuttle Capital 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 ETF with a short position of Tuttle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Tuttle Capital.

Diversification Opportunities for GraniteShares ETF and Tuttle Capital

0.85

Correlation Coefficient

GraniteShares ETF  Tuttle Capital

Very poor diversification

The 3 months correlation between GraniteShares and Tuttle is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Tuttle Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuttle Capital Management and GraniteShares ETF 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 ETF Trust are associated (or correlated) with Tuttle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuttle Capital Management has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Tuttle Capital go up and down completely randomly.

Pair Corralation between GraniteShares ETF and Tuttle Capital

If you would invest  2,334  in GraniteShares ETF Trust on September 3, 2024 and sell it today you would earn a total of  3,004  from holding GraniteShares ETF Trust or generate 128.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.56%
Values	Daily Returns

GraniteShares ETF Trust  vs.  Tuttle Capital Management

GraniteShares ETF Trust

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares ETF Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, GraniteShares ETF disclosed solid returns over the last few months and may actually be approaching a breakup point.

Tuttle Capital Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tuttle Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Tuttle Capital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with GraniteShares ETF and Tuttle Capital

The main advantage of trading using opposite GraniteShares ETF and Tuttle Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Tuttle Capital 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 Tuttle Capital will offset losses from the drop in Tuttle Capital's long position.

The idea behind GraniteShares ETF Trust and Tuttle Capital Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.