Correlation Between IShares and GraniteShares
Can any of the company-specific risk be diversified away by investing in both IShares 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 IShares and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares and GraniteShares 2x Long, you can compare the effects of market volatilities on IShares 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 IShares with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares and GraniteShares.
Diversification Opportunities for IShares and GraniteShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and GraniteShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IShares and GraniteShares 2x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 2x Long and IShares 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 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 2x Long has no effect on the direction of IShares i.e., IShares and GraniteShares go up and down completely randomly.
Pair Corralation between IShares and GraniteShares
Given the investment horizon of 90 days IShares is expected to generate 0.18 times more return on investment than GraniteShares. However, IShares is 5.64 times less risky than GraniteShares. It trades about 0.08 of its potential returns per unit of risk. GraniteShares 2x Long is currently generating about -0.02 per unit of risk. If you would invest 4,908 in IShares on November 2, 2024 and sell it today you would earn a total of 1,393 from holding IShares or generate 28.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 27.32% |
| Values | Daily Returns |
IShares vs. GraniteShares 2x Long
Performance |
| Timeline |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GraniteShares 2x Long |
IShares and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares and GraniteShares
The main advantage of trading using opposite IShares and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares 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.| IShares vs. VanEck Merk Gold | IShares vs. Goldman Sachs Physical | IShares vs. GraniteShares Gold Trust | IShares vs. iShares Gold Trust |
| GraniteShares vs. Tidal Trust II | GraniteShares vs. Tidal Trust II | GraniteShares vs. Direxion Daily META | GraniteShares vs. Direxion Daily META |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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