Correlation Between GraniteShares ETF and IShares Russell
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and IShares Russell 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 Russell 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 Russell Mid Cap, you can compare the effects of market volatilities on GraniteShares ETF and IShares Russell 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 Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and IShares Russell.
Diversification Opportunities for GraniteShares ETF and IShares Russell
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and IShares is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and iShares Russell Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Russell Mid 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 Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Russell Mid has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and IShares Russell go up and down completely randomly.
Pair Corralation between GraniteShares ETF and IShares Russell
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to under-perform the IShares Russell. In addition to that, GraniteShares ETF is 12.31 times more volatile than iShares Russell Mid Cap. It trades about -0.09 of its total potential returns per unit of risk. iShares Russell Mid Cap is currently generating about -0.05 per unit of volatility. If you would invest 13,364 in iShares Russell Mid Cap on November 18, 2024 and sell it today you would lose (89.00) from holding iShares Russell Mid Cap or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. iShares Russell Mid Cap
Performance |
| Timeline |
| GraniteShares ETF Trust |
| iShares Russell Mid |
GraniteShares ETF and IShares Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and IShares Russell
The main advantage of trading using opposite GraniteShares ETF and IShares Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, IShares Russell 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 Russell will offset losses from the drop in IShares Russell'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 Russell vs. iShares Russell Mid Cap | IShares Russell vs. iShares Russell 2000 | IShares Russell vs. iShares Russell Mid Cap | IShares Russell vs. iShares Russell 1000 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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