Correlation Between GraniteShares 15x and SPDR Dow
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and SPDR Dow 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 SPDR Dow 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 SPDR Dow Jones, you can compare the effects of market volatilities on GraniteShares 15x and SPDR Dow 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 SPDR Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and SPDR Dow.
Diversification Opportunities for GraniteShares 15x and SPDR Dow
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between GraniteShares and SPDR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and SPDR Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Dow Jones 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 SPDR Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Dow Jones has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and SPDR Dow go up and down completely randomly.
Pair Corralation between GraniteShares 15x and SPDR Dow
Considering the 90-day investment horizon GraniteShares 15x Long is expected to under-perform the SPDR Dow. In addition to that, GraniteShares 15x is 4.92 times more volatile than SPDR Dow Jones. It trades about -0.21 of its total potential returns per unit of risk. SPDR Dow Jones is currently generating about 0.37 per unit of volatility. If you would invest 9,947 in SPDR Dow Jones on December 4, 2024 and sell it today you would earn a total of 459.00 from holding SPDR Dow Jones or generate 4.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GraniteShares 15x Long vs. SPDR Dow Jones
Performance |
Timeline |
GraniteShares 15x Long |
SPDR Dow Jones |
GraniteShares 15x and SPDR Dow Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GraniteShares 15x and SPDR Dow
The main advantage of trading using opposite GraniteShares 15x and SPDR Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, SPDR Dow 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 SPDR Dow will offset losses from the drop in SPDR Dow's long position.GraniteShares 15x vs. GraniteShares 15x Long | GraniteShares 15x vs. Direxion Daily GOOGL | GraniteShares 15x vs. Direxion Daily MSFT | GraniteShares 15x vs. Direxion Daily AMZN |
SPDR Dow vs. iShares Cohen Steers | SPDR Dow vs. iShares Real Estate | SPDR Dow vs. SPDR Dow Jones | SPDR Dow vs. iShares Utilities ETF |
Check out your portfolio center.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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