Correlation Between GraniteShares Gold and IShares
Can any of the company-specific risk be diversified away by investing in both GraniteShares Gold and IShares 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 Gold and IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares Gold Trust and IShares, you can compare the effects of market volatilities on GraniteShares Gold and IShares 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 Gold with a short position of IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Gold and IShares.
Diversification Opportunities for GraniteShares Gold and IShares
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GraniteShares and IShares is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Gold Trust and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares and GraniteShares Gold 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 Gold Trust are associated (or correlated) with IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of GraniteShares Gold i.e., GraniteShares Gold and IShares go up and down completely randomly.
Pair Corralation between GraniteShares Gold and IShares
If you would invest 6,301 in IShares on August 28, 2024 and sell it today you would earn a total of 0.00 from holding IShares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
GraniteShares Gold Trust vs. IShares
Performance |
| Timeline |
| GraniteShares Gold Trust |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GraniteShares Gold and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Gold and IShares
The main advantage of trading using opposite GraniteShares Gold and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Gold position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' long position.| GraniteShares Gold vs. SPDR Gold MiniShares | GraniteShares Gold vs. Goldman Sachs Physical | GraniteShares Gold vs. abrdn Physical Gold | GraniteShares Gold vs. VanEck Merk Gold |
| IShares vs. VanEck Merk Gold | IShares vs. Goldman Sachs Physical | IShares vs. GraniteShares Gold Trust | IShares vs. iShares Gold Trust |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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