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
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and PIMCO is -0.76. 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 under-perform the PIMCO Short. In addition to that, GraniteShares is 35.22 times more volatile than PIMCO Short Term High. It trades about -0.11 of its total potential returns per unit of risk. PIMCO Short Term High is currently generating about 0.2 per unit of volatility. If you would invest 15,274 in PIMCO Short Term High on September 5, 2024 and sell it today you would earn a total of 245.00 from holding PIMCO Short Term High or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| 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. Vanguard FTSE Developed | GraniteShares vs. Amundi Index Solutions | GraniteShares vs. Amundi Index Solutions | GraniteShares vs. Albion Venture Capital |
| PIMCO Short vs. Leverage Shares 3x | PIMCO Short vs. WisdomTree Natural Gas | PIMCO Short vs. Leverage Shares 3x | PIMCO Short vs. GraniteShares 3x Short |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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