Correlation Between GraniteShares 15x and IShares Fixed
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and IShares Fixed 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 Fixed 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 Fixed Income, you can compare the effects of market volatilities on GraniteShares 15x and IShares Fixed 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 Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and IShares Fixed.
Diversification Opportunities for GraniteShares 15x and IShares Fixed
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and IShares is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and iShares Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Fixed Income 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 Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Fixed Income has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and IShares Fixed go up and down completely randomly.
Pair Corralation between GraniteShares 15x and IShares Fixed
Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the IShares Fixed. In addition to that, GraniteShares 15x is 28.18 times more volatile than iShares Fixed Income. It trades about -0.15 of its total potential returns per unit of risk. iShares Fixed Income is currently generating about 0.22 per unit of volatility. If you would invest 8,703 in iShares Fixed Income on September 12, 2024 and sell it today you would earn a total of 63.00 from holding iShares Fixed Income or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GraniteShares 15x Long vs. iShares Fixed Income
Performance |
| Timeline |
| GraniteShares 15x Long |
| iShares Fixed Income |
GraniteShares 15x and IShares Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and IShares Fixed
The main advantage of trading using opposite GraniteShares 15x and IShares Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, IShares Fixed 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 Fixed will offset losses from the drop in IShares Fixed's long position.| GraniteShares 15x vs. Direxion Daily MSFT | GraniteShares 15x vs. Direxion Daily GOOGL | GraniteShares 15x vs. AXS 125X NVDA | GraniteShares 15x vs. Direxion Shares ETF |
| IShares Fixed vs. American Century STOXX | IShares Fixed vs. Franklin Liberty Investment | IShares Fixed vs. Aquagold International | IShares Fixed vs. Morningstar Unconstrained Allocation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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