Correlation Between GraniteShares and Rize Circular

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

By analyzing existing cross correlation between GraniteShares 3x Long and Rize Circular Economy, you can compare the effects of market volatilities on GraniteShares and Rize Circular 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 Rize Circular. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Rize Circular.

Diversification Opportunities for GraniteShares and Rize Circular

0.68

Correlation Coefficient

GraniteShares  Rize Circular

Poor diversification

The 3 months correlation between GraniteShares and Rize is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Long and Rize Circular Economy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rize Circular Economy 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 3x Long are associated (or correlated) with Rize Circular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rize Circular Economy has no effect on the direction of GraniteShares i.e., GraniteShares and Rize Circular go up and down completely randomly.

Pair Corralation between GraniteShares and Rize Circular

Assuming the 90 days trading horizon GraniteShares 3x Long is expected to generate 4.68 times more return on investment than Rize Circular. However, GraniteShares is 4.68 times more volatile than Rize Circular Economy. It trades about 0.09 of its potential returns per unit of risk. Rize Circular Economy is currently generating about 0.12 per unit of risk. If you would invest  7,875  in GraniteShares 3x Long on April 24, 2025 and sell it today you would earn a total of  1,700  from holding GraniteShares 3x Long or generate 21.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

GraniteShares 3x Long  vs.  Rize Circular Economy

GraniteShares 3x Long

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares 3x Long are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, GraniteShares unveiled solid returns over the last few months and may actually be approaching a breakup point.

Rize Circular Economy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rize Circular Economy are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Rize Circular may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with GraniteShares and Rize Circular

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

The idea behind GraniteShares 3x Long and Rize Circular Economy 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..