Correlation Between GraniteShares ETF and JPMorgan Short
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and JPMorgan Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on GraniteShares ETF and JPMorgan Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and JPMorgan Short.
Diversification Opportunities for GraniteShares ETF and JPMorgan Short
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and JPMorgan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and JPMorgan Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Short Duration has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and JPMorgan Short go up and down completely randomly.
Pair Corralation between GraniteShares ETF and JPMorgan Short
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to under-perform the JPMorgan Short. In addition to that, GraniteShares ETF is 69.15 times more volatile than JPMorgan Short Duration. It trades about -0.28 of its total potential returns per unit of risk. JPMorgan Short Duration is currently generating about 0.2 per unit of volatility. If you would invest 4,673 in JPMorgan Short Duration on November 27, 2024 and sell it today you would earn a total of 23.00 from holding JPMorgan Short Duration or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. JPMorgan Short Duration
Performance |
| Timeline |
| GraniteShares ETF Trust |
| JPMorgan Short Duration |
GraniteShares ETF and JPMorgan Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and JPMorgan Short
The main advantage of trading using opposite GraniteShares ETF and JPMorgan Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, JPMorgan Short 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 Short will offset losses from the drop in JPMorgan Short'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 Short vs. JPMorgan Ultra Short Municipal | JPMorgan Short vs. JPMorgan International Bond | JPMorgan Short vs. JPMorgan Core Plus | JPMorgan Short vs. JPMorgan USD 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |