Correlation Between Invesco MSCI and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Invesco MSCI and GraniteShares 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 Invesco MSCI and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco MSCI Emerging and GraniteShares 3x Short, you can compare the effects of market volatilities on Invesco MSCI and GraniteShares 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 Invesco MSCI with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco MSCI and GraniteShares.
Diversification Opportunities for Invesco MSCI and GraniteShares
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and GraniteShares is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Invesco MSCI Emerging and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short and Invesco MSCI 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 Invesco MSCI Emerging are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Invesco MSCI i.e., Invesco MSCI and GraniteShares go up and down completely randomly.
Pair Corralation between Invesco MSCI and GraniteShares
Assuming the 90 days trading horizon Invesco MSCI Emerging is expected to under-perform the GraniteShares. But the etf apears to be less risky and, when comparing its historical volatility, Invesco MSCI Emerging is 8.82 times less risky than GraniteShares. The etf trades about -0.12 of its potential returns per unit of risk. The GraniteShares 3x Short is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 64,850 in GraniteShares 3x Short on August 29, 2024 and sell it today you would earn a total of 2,188 from holding GraniteShares 3x Short or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco MSCI Emerging vs. GraniteShares 3x Short
Performance |
| Timeline |
| Invesco MSCI Emerging |
| GraniteShares 3x Short |
Invesco MSCI and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco MSCI and GraniteShares
The main advantage of trading using opposite Invesco MSCI and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco MSCI position performs unexpectedly, GraniteShares 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 will offset losses from the drop in GraniteShares' long position.| Invesco MSCI vs. GraniteShares 3x Short | Invesco MSCI vs. WisdomTree Natural Gas | Invesco MSCI vs. WisdomTree SP 500 | Invesco MSCI vs. WisdomTree Silver 3x |
| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |