Correlation Between GraniteShares ETF and IShares Core
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and IShares Core 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 IShares Core 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 iShares Core MSCI, you can compare the effects of market volatilities on GraniteShares ETF and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and IShares Core.
Diversification Opportunities for GraniteShares ETF and IShares Core
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and IShares is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and IShares Core go up and down completely randomly.
Pair Corralation between GraniteShares ETF and IShares Core
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 26.48 times more return on investment than IShares Core. However, GraniteShares ETF is 26.48 times more volatile than iShares Core MSCI. It trades about 0.22 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.02 per unit of risk. If you would invest 3,301 in GraniteShares ETF Trust on August 31, 2024 and sell it today you would earn a total of 2,613 from holding GraniteShares ETF Trust or generate 79.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. iShares Core MSCI
Performance |
| Timeline |
| GraniteShares ETF Trust |
| iShares Core MSCI |
GraniteShares ETF and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and IShares Core
The main advantage of trading using opposite GraniteShares ETF and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core'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 |
| IShares Core vs. iShares Core MSCI | IShares Core vs. iShares Core International | IShares Core vs. iShares Core 10 | IShares Core vs. iShares MSCI Emerging |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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