Correlation Between GraniteShares ETF and Invesco Dynamic
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and Invesco Dynamic 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 Invesco Dynamic 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 Invesco Dynamic Leisure, you can compare the effects of market volatilities on GraniteShares ETF and Invesco Dynamic 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 Invesco Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Invesco Dynamic.
Diversification Opportunities for GraniteShares ETF and Invesco Dynamic
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and Invesco is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Invesco Dynamic Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Dynamic Leisure 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 Invesco Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Dynamic Leisure has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Invesco Dynamic go up and down completely randomly.
Pair Corralation between GraniteShares ETF and Invesco Dynamic
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 16.28 times more return on investment than Invesco Dynamic. However, GraniteShares ETF is 16.28 times more volatile than Invesco Dynamic Leisure. It trades about 0.2 of its potential returns per unit of risk. Invesco Dynamic Leisure is currently generating about 0.33 per unit of risk. If you would invest 3,550 in GraniteShares ETF Trust on August 30, 2024 and sell it today you would earn a total of 2,364 from holding GraniteShares ETF Trust or generate 66.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. Invesco Dynamic Leisure
Performance |
| Timeline |
| GraniteShares ETF Trust |
| Invesco Dynamic Leisure |
GraniteShares ETF and Invesco Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and Invesco Dynamic
The main advantage of trading using opposite GraniteShares ETF and Invesco Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, Invesco Dynamic 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 Invesco Dynamic will offset losses from the drop in Invesco Dynamic's long position.| GraniteShares ETF vs. ABIVAX Socit Anonyme | GraniteShares ETF vs. Morningstar Unconstrained Allocation | GraniteShares ETF vs. SPACE | GraniteShares ETF vs. Knife River |
| Invesco Dynamic vs. Amplify ETF Trust | Invesco Dynamic vs. Invesco Dynamic Food | Invesco Dynamic vs. Invesco Dynamic Building |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |