Correlation Between GraniteShares 15x and Tuttle Capital

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

Diversification Opportunities for GraniteShares 15x and Tuttle Capital

0.57

Correlation Coefficient

GraniteShares 15x  Tuttle Capital

Very weak diversification

The 3 months correlation between GraniteShares and Tuttle is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Tuttle Capital Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuttle Capital Short 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 Tuttle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuttle Capital Short has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Tuttle Capital go up and down completely randomly.

Pair Corralation between GraniteShares 15x and Tuttle Capital

Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 1.34 times more return on investment than Tuttle Capital. However, GraniteShares 15x is 1.34 times more volatile than Tuttle Capital Short. It trades about -0.02 of its potential returns per unit of risk. Tuttle Capital Short is currently generating about -0.03 per unit of risk. If you would invest  6,898  in GraniteShares 15x Long on November 27, 2024 and sell it today you would lose (1,548) from holding GraniteShares 15x Long or give up 22.44% of portfolio value over 90 days.

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

GraniteShares 15x Long  vs.  Tuttle Capital Short

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 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.

Tuttle Capital Short

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tuttle Capital Short has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Etf's basic 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.

Pair Trading with GraniteShares 15x and Tuttle Capital

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

The idea behind GraniteShares 15x Long and Tuttle Capital Short 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.