Correlation Between GraniteShares ETF and AB Active

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

Diversification Opportunities for GraniteShares ETF and AB Active

-0.84

Correlation Coefficient

GraniteShares ETF  AB Active

Pay attention - limited upside

The 3 months correlation between GraniteShares and SDFI is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, 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 AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and AB Active go up and down completely randomly.

Pair Corralation between GraniteShares ETF and AB Active

Given the investment horizon of 90 days GraniteShares ETF Trust is expected to under-perform the AB Active. In addition to that, GraniteShares ETF is 70.92 times more volatile than AB Active ETFs,. It trades about -0.12 of its total potential returns per unit of risk. AB Active ETFs, is currently generating about 0.21 per unit of volatility. If you would invest  3,500  in AB Active ETFs, on December 30, 2024 and sell it today you would earn a total of  60.00  from holding AB Active ETFs, or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

GraniteShares ETF Trust  vs.  AB Active ETFs,

GraniteShares ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days GraniteShares ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

AB Active ETFs,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AB Active ETFs, are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, AB Active is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with GraniteShares ETF and AB Active

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

The idea behind GraniteShares ETF Trust and AB Active ETFs, 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.