Correlation Between GraniteShares HIPS and GraniteShares Bloomberg
Can any of the company-specific risk be diversified away by investing in both GraniteShares HIPS 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 GraniteShares HIPS and GraniteShares Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares HIPS High and GraniteShares Bloomberg Commodity, you can compare the effects of market volatilities on GraniteShares HIPS 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 GraniteShares HIPS with a short position of GraniteShares Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares HIPS and GraniteShares Bloomberg.
Diversification Opportunities for GraniteShares HIPS and GraniteShares Bloomberg
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and GraniteShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares HIPS High and GraniteShares Bloomberg Commod in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares Bloomberg and GraniteShares HIPS 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 HIPS High 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 GraniteShares HIPS i.e., GraniteShares HIPS and GraniteShares Bloomberg go up and down completely randomly.
Pair Corralation between GraniteShares HIPS and GraniteShares Bloomberg
Given the investment horizon of 90 days GraniteShares HIPS High is expected to generate 0.6 times more return on investment than GraniteShares Bloomberg. However, GraniteShares HIPS High is 1.66 times less risky than GraniteShares Bloomberg. It trades about 0.28 of its potential returns per unit of risk. GraniteShares Bloomberg Commodity is currently generating about 0.15 per unit of risk. If you would invest 1,254 in GraniteShares HIPS High on November 30, 2024 and sell it today you would earn a total of 67.00 from holding GraniteShares HIPS High or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares HIPS High vs. GraniteShares Bloomberg Commod
Performance |
| Timeline |
| GraniteShares HIPS High |
| GraniteShares Bloomberg |
GraniteShares HIPS and GraniteShares Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares HIPS and GraniteShares Bloomberg
The main advantage of trading using opposite GraniteShares HIPS and GraniteShares Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares HIPS 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.| GraniteShares HIPS vs. Amplify High Income | GraniteShares HIPS vs. Global X Alternative | GraniteShares HIPS vs. Saba Closed End Funds | GraniteShares HIPS vs. Arrow ETF Trust |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |