Correlation Between GraniteShares and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Fidelity MSCI 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 and Fidelity MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 2x Long and Fidelity MSCI Financials, you can compare the effects of market volatilities on GraniteShares and Fidelity MSCI 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 with a short position of Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Fidelity MSCI.
Diversification Opportunities for GraniteShares and Fidelity MSCI
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GraniteShares and Fidelity is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 2x Long and Fidelity MSCI Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Financials and GraniteShares 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 2x Long are associated (or correlated) with Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Financials has no effect on the direction of GraniteShares i.e., GraniteShares and Fidelity MSCI go up and down completely randomly.
Pair Corralation between GraniteShares and Fidelity MSCI
Given the investment horizon of 90 days GraniteShares 2x Long is expected to generate 7.11 times more return on investment than Fidelity MSCI. However, GraniteShares is 7.11 times more volatile than Fidelity MSCI Financials. It trades about 0.01 of its potential returns per unit of risk. Fidelity MSCI Financials is currently generating about -0.08 per unit of risk. If you would invest 2,510 in GraniteShares 2x Long on August 22, 2025 and sell it today you would lose (246.00) from holding GraniteShares 2x Long or give up 9.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
GraniteShares 2x Long vs. Fidelity MSCI Financials
Performance |
| Timeline |
| GraniteShares 2x Long |
| Fidelity MSCI Financials |
GraniteShares and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Fidelity MSCI
The main advantage of trading using opposite GraniteShares and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Fidelity MSCI 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 Fidelity MSCI will offset losses from the drop in Fidelity MSCI's long position.| GraniteShares vs. Direxion Daily FTSE | GraniteShares vs. iShares Emerging Markets | GraniteShares vs. Global X SuperDividend | GraniteShares vs. iShares Energy ETF |
| Fidelity MSCI vs. Fidelity MSCI Health | Fidelity MSCI vs. Fidelity MSCI Utilities | Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. iShares MSCI USA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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