Correlation Between GraniteShares Bloomberg and United States
Can any of the company-specific risk be diversified away by investing in both GraniteShares Bloomberg and United States 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 United States 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 United States Commodity, you can compare the effects of market volatilities on GraniteShares Bloomberg and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Bloomberg and United States.
Diversification Opportunities for GraniteShares Bloomberg and United States
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and United is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Bloomberg Commod and United States Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Commodity 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Commodity has no effect on the direction of GraniteShares Bloomberg i.e., GraniteShares Bloomberg and United States go up and down completely randomly.
Pair Corralation between GraniteShares Bloomberg and United States
Given the investment horizon of 90 days GraniteShares Bloomberg is expected to generate 10.7 times less return on investment than United States. But when comparing it to its historical volatility, GraniteShares Bloomberg Commodity is 1.1 times less risky than United States. It trades about 0.02 of its potential returns per unit of risk. United States Commodity is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,317 in United States Commodity on September 1, 2024 and sell it today you would earn a total of 179.00 from holding United States Commodity or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GraniteShares Bloomberg Commod vs. United States Commodity
Performance |
| Timeline |
| GraniteShares Bloomberg |
| United States Commodity |
GraniteShares Bloomberg and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares Bloomberg and United States
The main advantage of trading using opposite GraniteShares Bloomberg and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Bloomberg position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' 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 |
| United States vs. KraneShares Bosera MSCI | United States vs. WisdomTree Continuous Commodity | United States vs. iPath Bloomberg Commodity | United States vs. Cambria Shareholder Yield |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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