Correlation Between IShares SP and GraniteShares Bloomberg
Can any of the company-specific risk be diversified away by investing in both IShares SP and GraniteShares Bloomberg 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 IShares SP and GraniteShares Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP GSCI and GraniteShares Bloomberg Commodity, you can compare the effects of market volatilities on IShares SP and GraniteShares Bloomberg 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 IShares SP with a short position of GraniteShares Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and GraniteShares Bloomberg.
Diversification Opportunities for IShares SP and GraniteShares Bloomberg
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and GraniteShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP GSCI and GraniteShares Bloomberg Commod in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares Bloomberg and IShares SP 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 iShares SP GSCI are associated (or correlated) with GraniteShares Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares Bloomberg has no effect on the direction of IShares SP i.e., IShares SP and GraniteShares Bloomberg go up and down completely randomly.
Pair Corralation between IShares SP and GraniteShares Bloomberg
Considering the 90-day investment horizon iShares SP GSCI is expected to generate 1.29 times more return on investment than GraniteShares Bloomberg. However, IShares SP is 1.29 times more volatile than GraniteShares Bloomberg Commodity. It trades about 0.01 of its potential returns per unit of risk. GraniteShares Bloomberg Commodity is currently generating about -0.04 per unit of risk. If you would invest 2,108 in iShares SP GSCI on August 31, 2024 and sell it today you would earn a total of 4.00 from holding iShares SP GSCI or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares SP GSCI vs. GraniteShares Bloomberg Commod
Performance |
| Timeline |
| iShares SP GSCI |
| GraniteShares Bloomberg |
IShares SP and GraniteShares Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and GraniteShares Bloomberg
The main advantage of trading using opposite IShares SP and GraniteShares Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, GraniteShares Bloomberg 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 Bloomberg will offset losses from the drop in GraniteShares Bloomberg's long position.| IShares SP vs. Invesco DB Commodity | IShares SP vs. iPath Bloomberg Commodity | IShares SP vs. Invesco DB Base | IShares SP vs. Invesco DB Agriculture |
| GraniteShares Bloomberg vs. abrdn Bloomberg All | GraniteShares Bloomberg vs. iShares Bloomberg Roll | GraniteShares Bloomberg vs. abrdn Bloomberg All | GraniteShares Bloomberg vs. Direxion Auspice Broad |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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