Correlation Between GraniteShares Bloomberg and DoubleLine ETF
Can any of the company-specific risk be diversified away by investing in both GraniteShares Bloomberg and DoubleLine ETF 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 Bloomberg and DoubleLine ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares Bloomberg Commodity and DoubleLine ETF Trust, you can compare the effects of market volatilities on GraniteShares Bloomberg and DoubleLine ETF 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 Bloomberg with a short position of DoubleLine ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Bloomberg and DoubleLine ETF.
Diversification Opportunities for GraniteShares Bloomberg and DoubleLine ETF
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GraniteShares and DoubleLine is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Bloomberg Commod and DoubleLine ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DoubleLine ETF Trust and GraniteShares Bloomberg 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 Bloomberg Commodity are associated (or correlated) with DoubleLine ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DoubleLine ETF Trust has no effect on the direction of GraniteShares Bloomberg i.e., GraniteShares Bloomberg and DoubleLine ETF go up and down completely randomly.
Pair Corralation between GraniteShares Bloomberg and DoubleLine ETF
Given the investment horizon of 90 days GraniteShares Bloomberg Commodity is expected to generate 0.97 times more return on investment than DoubleLine ETF. However, GraniteShares Bloomberg Commodity is 1.04 times less risky than DoubleLine ETF. It trades about 0.4 of its potential returns per unit of risk. DoubleLine ETF Trust is currently generating about 0.31 per unit of risk. If you would invest 1,978 in GraniteShares Bloomberg Commodity on October 25, 2024 and sell it today you would earn a total of 115.00 from holding GraniteShares Bloomberg Commodity or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares Bloomberg Commod vs. DoubleLine ETF Trust
Performance |
| Timeline |
| GraniteShares Bloomberg |
| DoubleLine ETF Trust |
GraniteShares Bloomberg and DoubleLine ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Bloomberg and DoubleLine ETF
The main advantage of trading using opposite GraniteShares Bloomberg and DoubleLine ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Bloomberg position performs unexpectedly, DoubleLine ETF 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 DoubleLine ETF will offset losses from the drop in DoubleLine ETF's long position.| GraniteShares Bloomberg vs. abrdn Bloomberg All | GraniteShares Bloomberg vs. iShares Bloomberg Roll | GraniteShares Bloomberg vs. abrdn Bloomberg All | GraniteShares Bloomberg vs. Direxion Auspice Broad |
| DoubleLine ETF vs. Freedom Day Dividend | DoubleLine ETF vs. Franklin Templeton ETF | DoubleLine ETF vs. iShares MSCI China | DoubleLine ETF vs. Tidal Trust II |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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