Correlation Between GraniteShares 15x and PIMCO Enhanced
Can any of the company-specific risk be diversified away by investing in both GraniteShares 15x and PIMCO Enhanced 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 PIMCO Enhanced 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 PIMCO Enhanced Low, you can compare the effects of market volatilities on GraniteShares 15x and PIMCO Enhanced 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 PIMCO Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 15x and PIMCO Enhanced.
Diversification Opportunities for GraniteShares 15x and PIMCO Enhanced
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and PIMCO is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and PIMCO Enhanced Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Enhanced Low 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 PIMCO Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Enhanced Low has no effect on the direction of GraniteShares 15x i.e., GraniteShares 15x and PIMCO Enhanced go up and down completely randomly.
Pair Corralation between GraniteShares 15x and PIMCO Enhanced
Given the investment horizon of 90 days GraniteShares 15x Long is expected to under-perform the PIMCO Enhanced. In addition to that, GraniteShares 15x is 95.85 times more volatile than PIMCO Enhanced Low. It trades about -0.11 of its total potential returns per unit of risk. PIMCO Enhanced Low is currently generating about 0.31 per unit of volatility. If you would invest 9,496 in PIMCO Enhanced Low on November 3, 2024 and sell it today you would earn a total of 67.00 from holding PIMCO Enhanced Low or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. PIMCO Enhanced Low
Performance |
| Timeline |
| GraniteShares 15x Long |
| PIMCO Enhanced Low |
GraniteShares 15x and PIMCO Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 15x and PIMCO Enhanced
The main advantage of trading using opposite GraniteShares 15x and PIMCO Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 15x position performs unexpectedly, PIMCO Enhanced 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 PIMCO Enhanced will offset losses from the drop in PIMCO Enhanced'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 |
| PIMCO Enhanced vs. PIMCO Enhanced Short | PIMCO Enhanced vs. SPDR DoubleLine Total | PIMCO Enhanced vs. FlexShares Ready Access | PIMCO Enhanced vs. iShares Ultra Short Term |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance |