Correlation Between GraniteShares 15x and StockSnips

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

Diversification Opportunities for GraniteShares 15x and StockSnips

0.76

Correlation Coefficient

GraniteShares 15x  StockSnips

Poor diversification

The 3 months correlation between GraniteShares and StockSnips is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and StockSnips AI Powered Sentimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StockSnips AI Powered 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 StockSnips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StockSnips AI Powered has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and StockSnips go up and down completely randomly.

Pair Corralation between GraniteShares 15x and StockSnips

Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 4.46 times more return on investment than StockSnips. However, GraniteShares 15x is 4.46 times more volatile than StockSnips AI Powered Sentiment. It trades about 0.08 of its potential returns per unit of risk. StockSnips AI Powered Sentiment is currently generating about 0.35 per unit of risk. If you would invest  6,776  in GraniteShares 15x Long on September 1, 2024 and sell it today you would earn a total of  413.00  from holding GraniteShares 15x Long or generate 6.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

GraniteShares 15x Long  vs.  StockSnips AI Powered Sentimen

GraniteShares 15x Long

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares 15x Long are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental indicators, GraniteShares 15x disclosed solid returns over the last few months and may actually be approaching a breakup point.

StockSnips AI Powered

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in StockSnips AI Powered Sentiment are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, StockSnips may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with GraniteShares 15x and StockSnips

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

The idea behind GraniteShares 15x Long and StockSnips AI Powered Sentiment 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.