Correlation Between GraniteShares and PIMCO Short
Can any of the company-specific risk be diversified away by investing in both GraniteShares and PIMCO Short 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 PIMCO Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 3x Short and PIMCO Short Term High, you can compare the effects of market volatilities on GraniteShares and PIMCO Short 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 PIMCO Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and PIMCO Short.
Diversification Opportunities for GraniteShares and PIMCO Short
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and PIMCO is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and PIMCO Short Term High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Short Term 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 Short are associated (or correlated) with PIMCO Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Short Term has no effect on the direction of GraniteShares i.e., GraniteShares and PIMCO Short go up and down completely randomly.
Pair Corralation between GraniteShares and PIMCO Short
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to generate 27.7 times more return on investment than PIMCO Short. However, GraniteShares is 27.7 times more volatile than PIMCO Short Term High. It trades about 0.06 of its potential returns per unit of risk. PIMCO Short Term High is currently generating about 0.26 per unit of risk. If you would invest 1,691 in GraniteShares 3x Short on August 30, 2024 and sell it today you would earn a total of 78.00 from holding GraniteShares 3x Short or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 3x Short vs. PIMCO Short Term High
Performance |
| Timeline |
| GraniteShares 3x Short |
| PIMCO Short Term |
GraniteShares and PIMCO Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and PIMCO Short
The main advantage of trading using opposite GraniteShares and PIMCO Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, PIMCO Short 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 PIMCO Short will offset losses from the drop in PIMCO Short's long position.| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
| PIMCO Short vs. Leverage Shares 3x | PIMCO Short vs. Leverage Shares 3x | PIMCO Short vs. GraniteShares 3x Short | PIMCO Short vs. Leverage Shares 3x |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |