Correlation Between GraniteShares 15x and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and WisdomTree Japan 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 WisdomTree Japan 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 WisdomTree Japan Hedged, you can compare the effects of market volatilities on GraniteShares 15x and WisdomTree Japan 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 WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and WisdomTree Japan.
Diversification Opportunities for GraniteShares 15x and WisdomTree Japan
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and WisdomTree is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged 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 WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and WisdomTree Japan go up and down completely randomly.
Pair Corralation between GraniteShares 15x and WisdomTree Japan
Considering the 90-day investment horizon GraniteShares 15x Long is expected to under-perform the WisdomTree Japan. In addition to that, GraniteShares 15x is 4.06 times more volatile than WisdomTree Japan Hedged. It trades about -0.08 of its total potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.18 per unit of volatility. If you would invest 12,769 in WisdomTree Japan Hedged on September 30, 2025 and sell it today you would earn a total of 1,594 from holding WisdomTree Japan Hedged or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
GraniteShares 15x Long vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| GraniteShares 15x Long |
| WisdomTree Japan Hedged |
GraniteShares 15x and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and WisdomTree Japan
The main advantage of trading using opposite GraniteShares 15x and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, WisdomTree Japan 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 WisdomTree Japan will offset losses from the drop in WisdomTree Japan's long position.| GraniteShares 15x vs. Innovator Laddered Allocation | GraniteShares 15x vs. ProShares UltraPro Dow30 | GraniteShares 15x vs. Direxion Daily Regional | GraniteShares 15x vs. Rockefeller Small Mid Cap |
| WisdomTree Japan vs. Vanguard Financials Index | WisdomTree Japan vs. Vanguard Russell 2000 | WisdomTree Japan vs. SPDR Russell Small | WisdomTree Japan vs. Dimensional International Value |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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