Correlation Between IREIT MarketVector and GraniteShares ETF
Can any of the company-specific risk be diversified away by investing in both IREIT MarketVector and GraniteShares ETF 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 IREIT MarketVector and GraniteShares ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iREIT MarketVector and GraniteShares ETF Trust, you can compare the effects of market volatilities on IREIT MarketVector and GraniteShares ETF 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 IREIT MarketVector with a short position of GraniteShares ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IREIT MarketVector and GraniteShares ETF.
Diversification Opportunities for IREIT MarketVector and GraniteShares ETF
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IREIT and GraniteShares is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding iREIT MarketVector and GraniteShares ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares ETF Trust and IREIT MarketVector 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 iREIT MarketVector are associated (or correlated) with GraniteShares ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares ETF Trust has no effect on the direction of IREIT MarketVector i.e., IREIT MarketVector and GraniteShares ETF go up and down completely randomly.
Pair Corralation between IREIT MarketVector and GraniteShares ETF
Given the investment horizon of 90 days iREIT MarketVector is expected to generate 0.13 times more return on investment than GraniteShares ETF. However, iREIT MarketVector is 7.71 times less risky than GraniteShares ETF. It trades about -0.01 of its potential returns per unit of risk. GraniteShares ETF Trust is currently generating about -0.09 per unit of risk. If you would invest 1,998 in iREIT MarketVector on November 18, 2024 and sell it today you would lose (4.00) from holding iREIT MarketVector or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iREIT MarketVector vs. GraniteShares ETF Trust
Performance |
| Timeline |
| iREIT MarketVector |
| GraniteShares ETF Trust |
IREIT MarketVector and GraniteShares ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IREIT MarketVector and GraniteShares ETF
The main advantage of trading using opposite IREIT MarketVector and GraniteShares ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IREIT MarketVector position performs unexpectedly, GraniteShares ETF 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 ETF will offset losses from the drop in GraniteShares ETF's long position.| IREIT MarketVector vs. Vert Global Sustainable | IREIT MarketVector vs. First Trust Exchange Traded | IREIT MarketVector vs. VanEck Mortgage REIT | IREIT MarketVector vs. Vanguard Global ex US |
| GraniteShares ETF vs. GraniteShares ETF Trust | GraniteShares ETF vs. Direxion Shares ETF | GraniteShares ETF vs. Direxion Daily AMZN | GraniteShares ETF vs. Direxion Daily GOOGL |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |