Correlation Between GraniteShares 15x and IShares International
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and IShares International 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 International 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 International Treasury, you can compare the effects of market volatilities on GraniteShares 15x and IShares International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and IShares International.
Diversification Opportunities for GraniteShares 15x and IShares International
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and IShares is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and iShares International Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares International has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and IShares International go up and down completely randomly.
Pair Corralation between GraniteShares 15x and IShares International
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 7.35 times more return on investment than IShares International. However, GraniteShares 15x is 7.35 times more volatile than iShares International Treasury. It trades about 0.01 of its potential returns per unit of risk. iShares International Treasury is currently generating about -0.17 per unit of risk. If you would invest 7,729 in GraniteShares 15x Long on August 26, 2024 and sell it today you would lose (120.00) from holding GraniteShares 15x Long or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. iShares International Treasury
Performance |
| Timeline |
| GraniteShares 15x Long |
| iShares International |
GraniteShares 15x and IShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and IShares International
The main advantage of trading using opposite GraniteShares 15x and IShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, IShares International 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 International will offset losses from the drop in IShares International'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 International vs. SPDR Bloomberg International | IShares International vs. SPDR FTSE International | IShares International vs. SPDR Bloomberg Short | IShares International vs. VanEck Green Bond |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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