Correlation Between GraniteShares Bloomberg and GraniteShares HIPS
Can any of the company-specific risk be diversified away by investing in both GraniteShares Bloomberg and GraniteShares HIPS 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 GraniteShares HIPS 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 GraniteShares HIPS High, you can compare the effects of market volatilities on GraniteShares Bloomberg and GraniteShares HIPS 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 GraniteShares HIPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Bloomberg and GraniteShares HIPS.
Diversification Opportunities for GraniteShares Bloomberg and GraniteShares HIPS
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GraniteShares and GraniteShares is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Bloomberg Commod and GraniteShares HIPS High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares HIPS High 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 GraniteShares HIPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares HIPS High has no effect on the direction of GraniteShares Bloomberg i.e., GraniteShares Bloomberg and GraniteShares HIPS go up and down completely randomly.
Pair Corralation between GraniteShares Bloomberg and GraniteShares HIPS
Given the investment horizon of 90 days GraniteShares Bloomberg is expected to generate 23.59 times less return on investment than GraniteShares HIPS. In addition to that, GraniteShares Bloomberg is 1.57 times more volatile than GraniteShares HIPS High. It trades about 0.02 of its total potential returns per unit of risk. GraniteShares HIPS High is currently generating about 0.59 per unit of volatility. If you would invest 1,259 in GraniteShares HIPS High on September 1, 2024 and sell it today you would earn a total of 78.00 from holding GraniteShares HIPS High or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares Bloomberg Commod vs. GraniteShares HIPS High
Performance |
| Timeline |
| GraniteShares Bloomberg |
| GraniteShares HIPS High |
GraniteShares Bloomberg and GraniteShares HIPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Bloomberg and GraniteShares HIPS
The main advantage of trading using opposite GraniteShares Bloomberg and GraniteShares HIPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Bloomberg position performs unexpectedly, GraniteShares HIPS 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 GraniteShares HIPS will offset losses from the drop in GraniteShares HIPS'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 |
| GraniteShares HIPS vs. WisdomTree 9060 Balanced | GraniteShares HIPS vs. First Trust Multi Asset | GraniteShares HIPS vs. Invesco Zacks Multi Asset | GraniteShares HIPS vs. Global X Alternative |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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