Correlation Between GraniteShares ETF and LifeGoal Investments

Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and LifeGoal Investments 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 LifeGoal Investments 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 LifeGoal Investments, you can compare the effects of market volatilities on GraniteShares ETF and LifeGoal Investments 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 LifeGoal Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and LifeGoal Investments.

Diversification Opportunities for GraniteShares ETF and LifeGoal Investments

-0.46

Correlation Coefficient

GraniteShares ETF  LifeGoal Investments

Very good diversification

The 3 months correlation between GraniteShares and LifeGoal is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and LifeGoal Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeGoal Investments 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 LifeGoal Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeGoal Investments has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and LifeGoal Investments go up and down completely randomly.

Pair Corralation between GraniteShares ETF and LifeGoal Investments

If you would invest  2,334  in GraniteShares ETF Trust on September 2, 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 Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

GraniteShares ETF Trust  vs.  LifeGoal Investments

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.

LifeGoal Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LifeGoal Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, LifeGoal Investments is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with GraniteShares ETF and LifeGoal Investments

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

The idea behind GraniteShares ETF Trust and LifeGoal Investments 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.