Correlation Between GraniteShares 15x and SPDR DoubleLine

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

Diversification Opportunities for GraniteShares 15x and SPDR DoubleLine

-0.55

Correlation Coefficient

GraniteShares 15x  SPDR DoubleLine

Excellent diversification

The 3 months correlation between GraniteShares and SPDR is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and SPDR DoubleLine Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR DoubleLine 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 SPDR DoubleLine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR DoubleLine Short has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and SPDR DoubleLine go up and down completely randomly.

Pair Corralation between GraniteShares 15x and SPDR DoubleLine

Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the SPDR DoubleLine. In addition to that, GraniteShares 15x is 76.52 times more volatile than SPDR DoubleLine Short. It trades about -0.03 of its total potential returns per unit of risk. SPDR DoubleLine Short is currently generating about 0.21 per unit of volatility. If you would invest  4,657  in SPDR DoubleLine Short on November 28, 2024 and sell it today you would earn a total of  53.00  from holding SPDR DoubleLine Short or generate 1.14% return on investment over 90 days.

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

GraniteShares 15x Long  vs.  SPDR DoubleLine 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 uncertain performance in the last few months, the Etf's fundamental indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

SPDR DoubleLine Short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR DoubleLine Short are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, SPDR DoubleLine 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 SPDR DoubleLine

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

The idea behind GraniteShares 15x Long and SPDR DoubleLine 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.