Correlation Between IHS Holding and GraniteShares

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

By analyzing existing cross correlation between IHS Holding and GraniteShares 2x Long, you can compare the effects of market volatilities on IHS Holding and GraniteShares 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 IHS Holding with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and GraniteShares.

Diversification Opportunities for IHS Holding and GraniteShares

-0.26

Correlation Coefficient

IHS Holding  GraniteShares

Very good diversification

The 3 months correlation between IHS and GraniteShares is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and GraniteShares 2x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 2x Long and IHS Holding 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 IHS Holding are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 2x Long has no effect on the direction of IHS Holding i.e., IHS Holding and GraniteShares go up and down completely randomly.

Pair Corralation between IHS Holding and GraniteShares

Considering the 90-day investment horizon IHS Holding is expected to generate 20.36 times less return on investment than GraniteShares. But when comparing it to its historical volatility, IHS Holding is 2.54 times less risky than GraniteShares. It trades about 0.01 of its potential returns per unit of risk. GraniteShares 2x Long is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,383  in GraniteShares 2x Long on September 6, 2025 and sell it today you would earn a total of  246.00  from holding GraniteShares 2x Long or generate 10.32% return on investment over 90 days.

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

IHS Holding  vs.  GraniteShares 2x Long

IHS Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days IHS Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, IHS Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

GraniteShares 2x Long

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares 2x Long are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, GraniteShares disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IHS Holding and GraniteShares

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

The idea behind IHS Holding and GraniteShares 2x Long 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 Global Correlations module to find global opportunities by holding instruments from different markets.