Correlation Between GraniteShares ETF and Fm 3

Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Fm 3 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 Fm 3 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 Fm 3 Year Investment, you can compare the effects of market volatilities on GraniteShares ETF and Fm 3 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 Fm 3. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Fm 3.

Diversification Opportunities for GraniteShares ETF and Fm 3

-0.85

Correlation Coefficient

GraniteShares ETF  Fm 3

Pay attention - limited upside

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

Pair Corralation between GraniteShares ETF and Fm 3

Given the investment horizon of 90 days GraniteShares ETF Trust is expected to under-perform the Fm 3. In addition to that, GraniteShares ETF is 76.25 times more volatile than Fm 3 Year Investment. It trades about -0.12 of its total potential returns per unit of risk. Fm 3 Year Investment is currently generating about 0.24 per unit of volatility. If you would invest  4,985  in Fm 3 Year Investment on December 30, 2024 and sell it today you would earn a total of  93.00  from holding Fm 3 Year Investment or generate 1.87% 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.  Fm 3 Year Investment

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.

Fm 3 Year

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fm 3 Year Investment are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Fm 3 is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GraniteShares ETF and Fm 3

The main advantage of trading using opposite GraniteShares ETF and Fm 3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Fm 3 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 Fm 3 will offset losses from the drop in Fm 3's long position.

The idea behind GraniteShares ETF Trust and Fm 3 Year Investment 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.