Correlation Between GraniteShares Bloomberg and IShares ESG
Can any of the company-specific risk be diversified away by investing in both GraniteShares Bloomberg and IShares ESG 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 IShares ESG 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 iShares ESG Aware, you can compare the effects of market volatilities on GraniteShares Bloomberg and IShares ESG 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 IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Bloomberg and IShares ESG.
Diversification Opportunities for GraniteShares Bloomberg and IShares ESG
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and IShares is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Bloomberg Commod and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware 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 IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of GraniteShares Bloomberg i.e., GraniteShares Bloomberg and IShares ESG go up and down completely randomly.
Pair Corralation between GraniteShares Bloomberg and IShares ESG
Given the investment horizon of 90 days GraniteShares Bloomberg Commodity is expected to generate 0.72 times more return on investment than IShares ESG. However, GraniteShares Bloomberg Commodity is 1.39 times less risky than IShares ESG. It trades about -0.04 of its potential returns per unit of risk. iShares ESG Aware is currently generating about -0.13 per unit of risk. If you would invest 2,030 in GraniteShares Bloomberg Commodity on August 31, 2024 and sell it today you would lose (14.00) from holding GraniteShares Bloomberg Commodity or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
GraniteShares Bloomberg Commod vs. iShares ESG Aware
Performance |
| Timeline |
| GraniteShares Bloomberg |
| iShares ESG Aware |
GraniteShares Bloomberg and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Bloomberg and IShares ESG
The main advantage of trading using opposite GraniteShares Bloomberg and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Bloomberg position performs unexpectedly, IShares ESG 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 ESG will offset losses from the drop in IShares ESG'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 |
| IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG USD |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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