Correlation Between GraniteShares ETF and VanEck Green
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and VanEck Green 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 VanEck Green 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 VanEck Green Bond, you can compare the effects of market volatilities on GraniteShares ETF and VanEck Green 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 VanEck Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and VanEck Green.
Diversification Opportunities for GraniteShares ETF and VanEck Green
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GraniteShares and VanEck is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and VanEck Green Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Green Bond 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 VanEck Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Green Bond has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and VanEck Green go up and down completely randomly.
Pair Corralation between GraniteShares ETF and VanEck Green
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to under-perform the VanEck Green. In addition to that, GraniteShares ETF is 41.3 times more volatile than VanEck Green Bond. It trades about -0.09 of its total potential returns per unit of risk. VanEck Green Bond is currently generating about 0.27 per unit of volatility. If you would invest 2,366 in VanEck Green Bond on November 18, 2024 and sell it today you would earn a total of 24.00 from holding VanEck Green Bond or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. VanEck Green Bond
Performance |
| Timeline |
| GraniteShares ETF Trust |
| VanEck Green Bond |
GraniteShares ETF and VanEck Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and VanEck Green
The main advantage of trading using opposite GraniteShares ETF and VanEck Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, VanEck Green 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 VanEck Green will offset losses from the drop in VanEck Green'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 |
| VanEck Green vs. iShares USD Green | VanEck Green vs. First Trust California | VanEck Green vs. Great Southern Bancorp | VanEck Green vs. VanEck China Bond |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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