Correlation Between IShares Trust and GraniteShares 15x
Can any of the company-specific risk be diversified away by investing in both IShares Trust and GraniteShares 15x 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 Trust and GraniteShares 15x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and GraniteShares 15x Long, you can compare the effects of market volatilities on IShares Trust and GraniteShares 15x 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 Trust with a short position of GraniteShares 15x. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and GraniteShares 15x.
Diversification Opportunities for IShares Trust and GraniteShares 15x
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and GraniteShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and GraniteShares 15x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 15x Long and IShares Trust 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 Trust are associated (or correlated) with GraniteShares 15x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 15x Long has no effect on the direction of IShares Trust i.e., IShares Trust and GraniteShares 15x go up and down completely randomly.
Pair Corralation between IShares Trust and GraniteShares 15x
Given the investment horizon of 90 days IShares Trust is expected to generate 15.66 times less return on investment than GraniteShares 15x. But when comparing it to its historical volatility, iShares Trust is 51.53 times less risky than GraniteShares 15x. It trades about 0.16 of its potential returns per unit of risk. GraniteShares 15x Long is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,500 in GraniteShares 15x Long on August 25, 2024 and sell it today you would earn a total of 548.00 from holding GraniteShares 15x Long or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 55.53% |
| Values | Daily Returns |
iShares Trust vs. GraniteShares 15x Long
Performance |
| Timeline |
| iShares Trust |
| GraniteShares 15x Long |
IShares Trust and GraniteShares 15x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and GraniteShares 15x
The main advantage of trading using opposite IShares Trust and GraniteShares 15x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust position performs unexpectedly, GraniteShares 15x 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 15x will offset losses from the drop in GraniteShares 15x's long position.| IShares Trust vs. First Trust Multi Asset | IShares Trust vs. Collaborative Investment Series | IShares Trust vs. Akros Monthly Payout | IShares Trust vs. Northern Lights |
| GraniteShares 15x vs. Direxion Daily SP | GraniteShares 15x vs. Direxion Daily Semiconductor | GraniteShares 15x vs. Direxion Daily Semiconductor |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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