Correlation Between IMGP DBi and GraniteShares HIPS
Can any of the company-specific risk be diversified away by investing in both IMGP DBi and GraniteShares HIPS 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 IMGP DBi and GraniteShares HIPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iMGP DBi Managed and GraniteShares HIPS High, you can compare the effects of market volatilities on IMGP DBi and GraniteShares HIPS 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 IMGP DBi with a short position of GraniteShares HIPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMGP DBi and GraniteShares HIPS.
Diversification Opportunities for IMGP DBi and GraniteShares HIPS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IMGP and GraniteShares is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding iMGP DBi Managed and GraniteShares HIPS High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares HIPS High and IMGP DBi 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 iMGP DBi Managed are associated (or correlated) with GraniteShares HIPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares HIPS High has no effect on the direction of IMGP DBi i.e., IMGP DBi and GraniteShares HIPS go up and down completely randomly.
Pair Corralation between IMGP DBi and GraniteShares HIPS
Given the investment horizon of 90 days iMGP DBi Managed is expected to under-perform the GraniteShares HIPS. But the etf apears to be less risky and, when comparing its historical volatility, iMGP DBi Managed is 1.15 times less risky than GraniteShares HIPS. The etf trades about -0.12 of its potential returns per unit of risk. The GraniteShares HIPS High is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 1,258 in GraniteShares HIPS High on August 30, 2024 and sell it today you would earn a total of 71.00 from holding GraniteShares HIPS High or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iMGP DBi Managed vs. GraniteShares HIPS High
Performance |
| Timeline |
| iMGP DBi Managed |
| GraniteShares HIPS High |
IMGP DBi and GraniteShares HIPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMGP DBi and GraniteShares HIPS
The main advantage of trading using opposite IMGP DBi and GraniteShares HIPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMGP DBi position performs unexpectedly, GraniteShares HIPS 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 GraniteShares HIPS will offset losses from the drop in GraniteShares HIPS's long position.| IMGP DBi vs. KFA Mount Lucas | IMGP DBi vs. Simplify Exchange Traded | IMGP DBi vs. Simplify Interest Rate | IMGP DBi vs. First Trust Managed |
| GraniteShares HIPS vs. Amplify BlackSwan Growth | GraniteShares HIPS vs. RPAR Risk Parity | GraniteShares HIPS vs. Pimco Stocksplus Long | GraniteShares HIPS vs. WisdomTree International Efficient |
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 CEOs Directory module to screen CEOs from public companies around the world.
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