Correlation Between GraniteShares ETF and JPMorgan International
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and JPMorgan International 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 JPMorgan International 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 JPMorgan International Bond, you can compare the effects of market volatilities on GraniteShares ETF and JPMorgan International 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 JPMorgan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and JPMorgan International.
Diversification Opportunities for GraniteShares ETF and JPMorgan International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and JPMorgan is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and JPMorgan International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan International 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 JPMorgan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan International has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and JPMorgan International go up and down completely randomly.
Pair Corralation between GraniteShares ETF and JPMorgan International
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 121.32 times more return on investment than JPMorgan International. However, GraniteShares ETF is 121.32 times more volatile than JPMorgan International Bond. It trades about 0.23 of its potential returns per unit of risk. JPMorgan International Bond is currently generating about -0.01 per unit of risk. If you would invest 2,949 in GraniteShares ETF Trust on August 24, 2024 and sell it today you would earn a total of 2,457 from holding GraniteShares ETF Trust or generate 83.32% 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. JPMorgan International Bond
Performance |
| Timeline |
| GraniteShares ETF Trust |
| JPMorgan International |
GraniteShares ETF and JPMorgan International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and JPMorgan International
The main advantage of trading using opposite GraniteShares ETF and JPMorgan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, JPMorgan International 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 JPMorgan International will offset losses from the drop in JPMorgan International'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 |
| JPMorgan International vs. Invesco Fundamental Investment | JPMorgan International vs. iShares International High | JPMorgan International vs. VanEck International High |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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