Correlation Between GraniteShares and Fidelity Global

Can any of the company-specific risk be diversified away by investing in both GraniteShares and Fidelity Global 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 and Fidelity Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GraniteShares 3x Short and Fidelity Global Qualityome, you can compare the effects of market volatilities on GraniteShares and Fidelity Global 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 with a short position of Fidelity Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Fidelity Global.

Diversification Opportunities for GraniteShares and Fidelity Global

-0.62

Correlation Coefficient

GraniteShares  Fidelity Global

Excellent diversification

The 3 months correlation between GraniteShares and Fidelity is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and Fidelity Global Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Global Qual and GraniteShares 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 3x Short are associated (or correlated) with Fidelity Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Global Qual has no effect on the direction of GraniteShares i.e., GraniteShares and Fidelity Global go up and down completely randomly.

Pair Corralation between GraniteShares and Fidelity Global

Assuming the 90 days trading horizon GraniteShares 3x Short is expected to generate 17.24 times more return on investment than Fidelity Global. However, GraniteShares is 17.24 times more volatile than Fidelity Global Qualityome. It trades about 0.07 of its potential returns per unit of risk. Fidelity Global Qualityome is currently generating about 0.07 per unit of risk. If you would invest  131.00  in GraniteShares 3x Short on September 14, 2024 and sell it today you would earn a total of  70,332  from holding GraniteShares 3x Short or generate 53688.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.59%
Values	Daily Returns

GraniteShares 3x Short  vs.  Fidelity Global Qualityome

GraniteShares 3x Short

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GraniteShares 3x Short has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Fidelity Global Qual

Risk-Adjusted Performance

5 of 100

Modest

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

Pair Trading with GraniteShares and Fidelity Global

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

The idea behind GraniteShares 3x Short and Fidelity Global Qualityome 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 Commodity Directory module to find actively traded commodities issued by global exchanges.