Correlation Between GraniteShares 15x and Loncar Cancer

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

Diversification Opportunities for GraniteShares 15x and Loncar Cancer

-0.27

Correlation Coefficient

GraniteShares 15x  Loncar Cancer

Very good diversification

The 3 months correlation between GraniteShares and Loncar is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and Loncar Cancer Immunotherapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loncar Cancer Immuno 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 Loncar Cancer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loncar Cancer Immuno has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and Loncar Cancer go up and down completely randomly.

Pair Corralation between GraniteShares 15x and Loncar Cancer

Considering the 90-day investment horizon GraniteShares 15x Long is expected to generate 1.54 times more return on investment than Loncar Cancer. However, GraniteShares 15x is 1.54 times more volatile than Loncar Cancer Immunotherapy. It trades about 0.06 of its potential returns per unit of risk. Loncar Cancer Immunotherapy is currently generating about -0.14 per unit of risk. If you would invest  3,172  in GraniteShares 15x Long on September 24, 2024 and sell it today you would earn a total of  296.00  from holding GraniteShares 15x Long or generate 9.33% return on investment over 90 days.

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

GraniteShares 15x Long  vs.  Loncar Cancer Immunotherapy

GraniteShares 15x Long

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares 15x Long are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, GraniteShares 15x may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Loncar Cancer Immuno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loncar Cancer Immunotherapy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Etf's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with GraniteShares 15x and Loncar Cancer

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

The idea behind GraniteShares 15x Long and Loncar Cancer Immunotherapy 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.