Correlation Between GraniteShares ETF and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and SPDR 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 ETF and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares ETF Trust and SPDR Bloomberg Short, you can compare the effects of market volatilities on GraniteShares ETF and SPDR 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 ETF with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and SPDR Bloomberg.
Diversification Opportunities for GraniteShares ETF and SPDR Bloomberg
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and SPDR is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and SPDR Bloomberg Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Short and GraniteShares ETF 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 ETF Trust are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Short has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between GraniteShares ETF and SPDR Bloomberg
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to under-perform the SPDR Bloomberg. In addition to that, GraniteShares ETF is 13.6 times more volatile than SPDR Bloomberg Short. It trades about -0.09 of its total potential returns per unit of risk. SPDR Bloomberg Short is currently generating about 0.26 per unit of volatility. If you would invest 2,510 in SPDR Bloomberg Short on November 18, 2024 and sell it today you would earn a total of 72.00 from holding SPDR Bloomberg Short or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. SPDR Bloomberg Short
Performance |
| Timeline |
| GraniteShares ETF Trust |
| SPDR Bloomberg Short |
GraniteShares ETF and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and SPDR Bloomberg
The main advantage of trading using opposite GraniteShares ETF and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, SPDR 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| GraniteShares ETF vs. GraniteShares ETF Trust | GraniteShares ETF vs. Direxion Shares ETF | GraniteShares ETF vs. Direxion Daily AMZN | GraniteShares ETF vs. Direxion Daily GOOGL |
| SPDR Bloomberg vs. SPDR Bloomberg International | SPDR Bloomberg vs. iShares 1 3 Year | SPDR Bloomberg vs. SPDR Bloomberg International | SPDR Bloomberg vs. SPDR FTSE International |
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 CEOs Directory module to screen CEOs from public companies around the world.
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