Correlation Between GraniteShares 15x and Pacer Benchmark

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

Diversification Opportunities for GraniteShares 15x and Pacer Benchmark

-0.61

Correlation Coefficient

GraniteShares 15x  Pacer Benchmark

Excellent diversification

The 3 months correlation between GraniteShares and Pacer is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Pacer Benchmark Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Benchmark Indu 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 Pacer Benchmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Benchmark Indu has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Pacer Benchmark go up and down completely randomly.

Pair Corralation between GraniteShares 15x and Pacer Benchmark

Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the Pacer Benchmark. In addition to that, GraniteShares 15x is 7.73 times more volatile than Pacer Benchmark Industrial. It trades about -0.07 of its total potential returns per unit of risk. Pacer Benchmark Industrial is currently generating about 0.07 per unit of volatility. If you would invest  3,495  in Pacer Benchmark Industrial on December 28, 2024 and sell it today you would earn a total of  154.00  from holding Pacer Benchmark Industrial or generate 4.41% return on investment over 90 days.

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

GraniteShares 15x Long  vs.  Pacer Benchmark Industrial

GraniteShares 15x Long

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Etf's fundamental 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.

Pacer Benchmark Indu

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pacer Benchmark Industrial are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Pacer Benchmark is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GraniteShares 15x and Pacer Benchmark

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

The idea behind GraniteShares 15x Long and Pacer Benchmark Industrial 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.