Correlation Between GraniteShares Bloomberg and ETRACS Bloomberg
Can any of the company-specific risk be diversified away by investing in both GraniteShares Bloomberg and ETRACS Bloomberg 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 ETRACS Bloomberg 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 ETRACS Bloomberg Commodity, you can compare the effects of market volatilities on GraniteShares Bloomberg and ETRACS Bloomberg 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 ETRACS Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Bloomberg and ETRACS Bloomberg.
Diversification Opportunities for GraniteShares Bloomberg and ETRACS Bloomberg
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and ETRACS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Bloomberg Commod and ETRACS Bloomberg Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETRACS Bloomberg Com 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 ETRACS Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETRACS Bloomberg Com has no effect on the direction of GraniteShares Bloomberg i.e., GraniteShares Bloomberg and ETRACS Bloomberg go up and down completely randomly.
Pair Corralation between GraniteShares Bloomberg and ETRACS Bloomberg
Given the investment horizon of 90 days GraniteShares Bloomberg Commodity is expected to generate 0.3 times more return on investment than ETRACS Bloomberg. However, GraniteShares Bloomberg Commodity is 3.34 times less risky than ETRACS Bloomberg. It trades about -0.04 of its potential returns per unit of risk. ETRACS Bloomberg Commodity is currently generating about -0.02 per unit of risk. If you would invest 2,049 in GraniteShares Bloomberg Commodity on August 30, 2024 and sell it today you would lose (33.00) from holding GraniteShares Bloomberg Commodity or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares Bloomberg Commod vs. ETRACS Bloomberg Commodity
Performance |
| Timeline |
| GraniteShares Bloomberg |
| ETRACS Bloomberg Com |
GraniteShares Bloomberg and ETRACS Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Bloomberg and ETRACS Bloomberg
The main advantage of trading using opposite GraniteShares Bloomberg and ETRACS Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Bloomberg position performs unexpectedly, ETRACS Bloomberg 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 ETRACS Bloomberg will offset losses from the drop in ETRACS Bloomberg'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 |
| ETRACS Bloomberg vs. UBS AG London | ETRACS Bloomberg vs. iShares Bloomberg Roll | ETRACS Bloomberg vs. GraniteShares Bloomberg Commodity | ETRACS Bloomberg vs. abrdn Bloomberg All |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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