Correlation Between GraniteShares and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both GraniteShares and Amundi Treasury 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 Amundi Treasury 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 Amundi Treasury Bond, you can compare the effects of market volatilities on GraniteShares and Amundi Treasury 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 Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Amundi Treasury.
Diversification Opportunities for GraniteShares and Amundi Treasury
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and Amundi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and Amundi Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Treasury Bond 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 Amundi Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Treasury Bond has no effect on the direction of GraniteShares i.e., GraniteShares and Amundi Treasury go up and down completely randomly.
Pair Corralation between GraniteShares and Amundi Treasury
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to generate 76.66 times more return on investment than Amundi Treasury. However, GraniteShares is 76.66 times more volatile than Amundi Treasury Bond. It trades about 0.04 of its potential returns per unit of risk. Amundi Treasury Bond is currently generating about 0.02 per unit of risk. If you would invest 15,090 in GraniteShares 3x Short on September 5, 2024 and sell it today you would earn a total of 47,998 from holding GraniteShares 3x Short or generate 318.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.4% |
| Values | Daily Returns |
GraniteShares 3x Short vs. Amundi Treasury Bond
Performance |
| Timeline |
| GraniteShares 3x Short |
| Amundi Treasury Bond |
GraniteShares and Amundi Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Amundi Treasury
The main advantage of trading using opposite GraniteShares and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares position performs unexpectedly, Amundi Treasury 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 Amundi Treasury will offset losses from the drop in Amundi Treasury's long position.| GraniteShares vs. Vanguard FTSE Developed | GraniteShares vs. Amundi Index Solutions | GraniteShares vs. Amundi Index Solutions | GraniteShares vs. Albion Venture Capital |
| Amundi Treasury vs. Amundi EUR High | Amundi Treasury vs. Amundi Index Solutions | Amundi Treasury vs. Amundi MSCI Pacific | Amundi Treasury vs. Amundi MSCI Europe |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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