Correlation Between GraniteShares 15x and ProShares Online

Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and ProShares Online 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 15x and ProShares Online into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GraniteShares 15x Long and ProShares Online Retail, you can compare the effects of market volatilities on GraniteShares 15x and ProShares Online 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 15x with a short position of ProShares Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and ProShares Online.

Diversification Opportunities for GraniteShares 15x and ProShares Online

0.83

Correlation Coefficient

GraniteShares 15x  ProShares Online

Very poor diversification

The 3 months correlation between GraniteShares and ProShares is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and ProShares Online Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Online Retail and GraniteShares 15x 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 15x Long are associated (or correlated) with ProShares Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Online Retail has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and ProShares Online go up and down completely randomly.

Pair Corralation between GraniteShares 15x and ProShares Online

Considering the 90-day investment horizon GraniteShares 15x Long is expected to generate 19.07 times more return on investment than ProShares Online. However, GraniteShares 15x is 19.07 times more volatile than ProShares Online Retail. It trades about 0.06 of its potential returns per unit of risk. ProShares Online Retail is currently generating about 0.07 per unit of risk. If you would invest  338.00  in GraniteShares 15x Long on September 14, 2024 and sell it today you would earn a total of  3,514  from holding GraniteShares 15x Long or generate 1039.64% return on investment over 90 days.

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

GraniteShares 15x Long  vs.  ProShares Online Retail

GraniteShares 15x Long

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares 15x Long are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating fundamental drivers, GraniteShares 15x disclosed solid returns over the last few months and may actually be approaching a breakup point.

ProShares Online Retail

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Online Retail are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak essential indicators, ProShares Online displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GraniteShares 15x and ProShares Online

The main advantage of trading using opposite GraniteShares 15x and ProShares Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, ProShares Online 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 ProShares Online will offset losses from the drop in ProShares Online's long position.

The idea behind GraniteShares 15x Long and ProShares Online Retail 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.