Correlation Between GraniteShares 15x and IShares ESG
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and IShares ESG 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 15x and IShares ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 15x Long and iShares ESG Aggregate, you can compare the effects of market volatilities on GraniteShares 15x and IShares ESG 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 15x with a short position of IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and IShares ESG.
Diversification Opportunities for GraniteShares 15x and IShares ESG
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and IShares is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and iShares ESG Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aggregate and GraniteShares 15x 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 15x Long are associated (or correlated) with IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aggregate has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and IShares ESG go up and down completely randomly.
Pair Corralation between GraniteShares 15x and IShares ESG
Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the IShares ESG. In addition to that, GraniteShares 15x is 15.69 times more volatile than iShares ESG Aggregate. It trades about -0.15 of its total potential returns per unit of risk. iShares ESG Aggregate is currently generating about 0.09 per unit of volatility. If you would invest 4,674 in iShares ESG Aggregate on September 18, 2024 and sell it today you would earn a total of 25.00 from holding iShares ESG Aggregate or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. iShares ESG Aggregate
Performance |
| Timeline |
| GraniteShares 15x Long |
| iShares ESG Aggregate |
GraniteShares 15x and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and IShares ESG
The main advantage of trading using opposite GraniteShares 15x and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, IShares ESG 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 IShares ESG will offset losses from the drop in IShares ESG's long position.The idea behind GraniteShares 15x Long and iShares ESG Aggregate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IShares ESG vs. ClearShares Ultra Short Maturity | IShares ESG vs. PGIM Active High | IShares ESG vs. Pacer Trendpilot Bond | IShares ESG vs. Pacer Lunt Large |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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