Correlation Between GraniteShares ETF and IndexIQ
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and IndexIQ 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 IndexIQ 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 IndexIQ, you can compare the effects of market volatilities on GraniteShares ETF and IndexIQ 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 IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and IndexIQ.
Diversification Opportunities for GraniteShares ETF and IndexIQ
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and IndexIQ is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ 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 IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and IndexIQ go up and down completely randomly.
Pair Corralation between GraniteShares ETF and IndexIQ
If you would invest 2,334 in GraniteShares ETF Trust on September 2, 2024 and sell it today you would earn a total of 3,004 from holding GraniteShares ETF Trust or generate 128.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 1.56% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. IndexIQ
Performance |
| Timeline |
| GraniteShares ETF Trust |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GraniteShares ETF and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and IndexIQ
The main advantage of trading using opposite GraniteShares ETF and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, IndexIQ 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 IndexIQ will offset losses from the drop in IndexIQ'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 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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