Correlation Between GraniteShares 15x and Direxion

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

Diversification Opportunities for GraniteShares 15x and Direxion

0.09

Correlation Coefficient

GraniteShares 15x  Direxion

Significant diversification

The 3 months correlation between GraniteShares and Direxion is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Direxion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion 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 Direxion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Direxion go up and down completely randomly.

Pair Corralation between GraniteShares 15x and Direxion

If you would invest  628.00  in Direxion on October 22, 2024 and sell it today you would earn a total of  0.00  from holding Direxion or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

GraniteShares 15x Long  vs.  Direxion

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 latest uncertain performance, the Etf's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

Direxion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Direxion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Direxion 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 15x and Direxion

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

The idea behind GraniteShares 15x Long and Direxion 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.