Correlation Between GraniteShares 15x and Hartford Municipal

Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and Hartford Municipal 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 Hartford Municipal 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 Hartford Municipal Opportunities, you can compare the effects of market volatilities on GraniteShares 15x and Hartford Municipal 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 Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and Hartford Municipal.

Diversification Opportunities for GraniteShares 15x and Hartford Municipal

0.03

Correlation Coefficient

GraniteShares 15x  Hartford Municipal

Significant diversification

The 3 months correlation between GraniteShares and Hartford is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Hartford Municipal Opportuniti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Municipal 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 Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Municipal has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Hartford Municipal go up and down completely randomly.

Pair Corralation between GraniteShares 15x and Hartford Municipal

Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 17.9 times more return on investment than Hartford Municipal. However, GraniteShares 15x is 17.9 times more volatile than Hartford Municipal Opportunities. It trades about 0.0 of its potential returns per unit of risk. Hartford Municipal Opportunities is currently generating about 0.01 per unit of risk. If you would invest  7,615  in GraniteShares 15x Long on October 24, 2024 and sell it today you would lose (457.00) from holding GraniteShares 15x Long or give up 6.0% of portfolio value over 90 days.

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

GraniteShares 15x Long  vs.  Hartford Municipal Opportuniti

GraniteShares 15x Long

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GraniteShares 15x Long has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, GraniteShares 15x is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Hartford Municipal

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Hartford Municipal Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hartford Municipal is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with GraniteShares 15x and Hartford Municipal

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

The idea behind GraniteShares 15x Long and Hartford Municipal Opportunities 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.