Correlation Between GraniteShares ETF and ABIVAX Société

Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and ABIVAX Société 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 ABIVAX Société 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 ABIVAX Socit Anonyme, you can compare the effects of market volatilities on GraniteShares ETF and ABIVAX Société 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 ABIVAX Société. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and ABIVAX Société.

Diversification Opportunities for GraniteShares ETF and ABIVAX Société

0.0

Correlation Coefficient

GraniteShares ETF  ABIVAX Société

Pay attention - limited upside

The 3 months correlation between GraniteShares and ABIVAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and ABIVAX Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABIVAX Socit Anonyme 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 ABIVAX Société. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABIVAX Socit Anonyme has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and ABIVAX Société go up and down completely randomly.

Pair Corralation between GraniteShares ETF and ABIVAX Société

Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 1.7 times more return on investment than ABIVAX Société. However, GraniteShares ETF is 1.7 times more volatile than ABIVAX Socit Anonyme. It trades about 0.1 of its potential returns per unit of risk. ABIVAX Socit Anonyme is currently generating about 0.03 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	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GraniteShares ETF Trust  vs.  ABIVAX Socit Anonyme

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.

ABIVAX Socit Anonyme

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ABIVAX Socit Anonyme has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ABIVAX Société is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GraniteShares ETF and ABIVAX Société

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

The idea behind GraniteShares ETF Trust and ABIVAX Socit Anonyme 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.