Correlation Between GraniteShares ETF and Janus Detroit

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

By analyzing existing cross correlation between GraniteShares ETF Trust and Janus Detroit Street, you can compare the effects of market volatilities on GraniteShares ETF and Janus Detroit 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 ETF with a short position of Janus Detroit. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Janus Detroit.

Diversification Opportunities for GraniteShares ETF and Janus Detroit

-0.49

Correlation Coefficient

GraniteShares ETF  Janus Detroit

Very good diversification

The 3 months correlation between GraniteShares and Janus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Janus Detroit Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Detroit Street and GraniteShares ETF 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 ETF Trust are associated (or correlated) with Janus Detroit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Detroit Street has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Janus Detroit go up and down completely randomly.

Pair Corralation between GraniteShares ETF and Janus Detroit

Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 48.96 times more return on investment than Janus Detroit. However, GraniteShares ETF is 48.96 times more volatile than Janus Detroit Street. It trades about 0.1 of its potential returns per unit of risk. Janus Detroit Street is currently generating about 0.19 per unit of risk. If you would invest  565.00  in GraniteShares ETF Trust on August 30, 2024 and sell it today you would earn a total of  5,349  from holding GraniteShares ETF Trust or generate 946.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	53.54%
Values	Daily Returns

GraniteShares ETF Trust  vs.  Janus Detroit Street

GraniteShares ETF Trust

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares ETF Trust are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, GraniteShares ETF disclosed solid returns over the last few months and may actually be approaching a breakup point.

Janus Detroit Street

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Janus Detroit Street are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Janus Detroit is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with GraniteShares ETF and Janus Detroit

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

The idea behind GraniteShares ETF Trust and Janus Detroit Street 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.

Check out your portfolio center.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.