Correlation Between GraniteShares Gold and IShares Gold
Can any of the company-specific risk be diversified away by investing in both GraniteShares Gold and IShares Gold 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 Gold 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 Gold Trust, you can compare the effects of market volatilities on GraniteShares Gold and IShares Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Gold and IShares Gold.
Diversification Opportunities for GraniteShares Gold and IShares Gold
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GraniteShares and IShares is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Gold Trust and iShares Gold Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Gold Trust 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Gold Trust has no effect on the direction of GraniteShares Gold i.e., GraniteShares Gold and IShares Gold go up and down completely randomly.
Pair Corralation between GraniteShares Gold and IShares Gold
Considering the 90-day investment horizon GraniteShares Gold Trust is expected to generate 1.0 times more return on investment than IShares Gold. However, GraniteShares Gold is 1.0 times more volatile than iShares Gold Trust. It trades about -0.18 of its potential returns per unit of risk. iShares Gold Trust is currently generating about -0.18 per unit of risk. If you would invest 2,751 in GraniteShares Gold Trust on August 31, 2024 and sell it today you would lose (147.00) from holding GraniteShares Gold Trust or give up 5.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares Gold Trust vs. iShares Gold Trust
Performance |
| Timeline |
| GraniteShares Gold Trust |
| iShares Gold Trust |
GraniteShares Gold and IShares Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Gold and IShares Gold
The main advantage of trading using opposite GraniteShares Gold and IShares Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Gold position performs unexpectedly, IShares Gold 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 Gold will offset losses from the drop in IShares Gold's long position.| GraniteShares Gold vs. VanEck Merk Gold | GraniteShares Gold vs. Goldman Sachs Physical | GraniteShares Gold vs. iShares Gold Trust | GraniteShares Gold vs. iShares Bloomberg Roll |
| IShares Gold vs. SPDR Gold MiniShares | IShares Gold vs. Goldman Sachs Physical | IShares Gold vs. GraniteShares Gold Trust | IShares Gold vs. VanEck Merk Gold |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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