Correlation Between GraniteShares 15x and IShares Core
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and IShares Core 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 Core 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 Core 5 10, you can compare the effects of market volatilities on GraniteShares 15x and IShares Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and IShares Core.
Diversification Opportunities for GraniteShares 15x and IShares Core
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and IShares is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and iShares Core 5 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core 5 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core 5 has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and IShares Core go up and down completely randomly.
Pair Corralation between GraniteShares 15x and IShares Core
Given the investment horizon of 90 days GraniteShares 15x Long is expected to generate 12.82 times more return on investment than IShares Core. However, GraniteShares 15x is 12.82 times more volatile than iShares Core 5 10. It trades about 0.03 of its potential returns per unit of risk. iShares Core 5 10 is currently generating about 0.15 per unit of risk. If you would invest 7,108 in GraniteShares 15x Long on September 3, 2024 and sell it today you would earn a total of 81.00 from holding GraniteShares 15x Long or generate 1.14% 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 Core 5 10
Performance |
| Timeline |
| GraniteShares 15x Long |
| iShares Core 5 |
GraniteShares 15x and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and IShares Core
The main advantage of trading using opposite GraniteShares 15x and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core'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 Core vs. iShares Core 1 5 | IShares Core vs. iShares Core International | IShares Core vs. iShares Core 10 | IShares Core vs. iShares Edge Investment |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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