Correlation Between IShares MSCI and GraniteShares
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 MSCI and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI China and GraniteShares 2x Long, you can compare the effects of market volatilities on IShares MSCI 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 MSCI with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and GraniteShares.
Diversification Opportunities for IShares MSCI and GraniteShares
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and GraniteShares is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China 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 MSCI 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 MSCI China 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 MSCI i.e., IShares MSCI and GraniteShares go up and down completely randomly.
Pair Corralation between IShares MSCI and GraniteShares
Given the investment horizon of 90 days iShares MSCI China is expected to generate 0.99 times more return on investment than GraniteShares. However, iShares MSCI China is 1.01 times less risky than GraniteShares. It trades about -0.01 of its potential returns per unit of risk. GraniteShares 2x Long is currently generating about -0.21 per unit of risk. If you would invest 4,691 in iShares MSCI China on October 7, 2024 and sell it today you would lose (52.00) from holding iShares MSCI China or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI China vs. GraniteShares 2x Long
Performance |
| Timeline |
| iShares MSCI China |
| GraniteShares 2x Long |
IShares MSCI and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and GraniteShares
The main advantage of trading using opposite IShares MSCI and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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 MSCI vs. KraneShares CSI China | IShares MSCI vs. Invesco China Technology | IShares MSCI vs. iShares MSCI India | IShares MSCI vs. Xtrackers Harvest CSI |
| GraniteShares vs. ProShares Ultra QQQ | GraniteShares vs. ProShares Ultra Dow30 | GraniteShares vs. ProShares UltraShort SP500 | GraniteShares vs. ProShares Ultra Financials |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |