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 MSCI, 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
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GraniteShares and IShares is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 15x Long and iShares ESG MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG MSCI 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 MSCI 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 is expected to generate 1.31 times less return on investment than IShares ESG. In addition to that, GraniteShares 15x is 5.78 times more volatile than iShares ESG MSCI. It trades about 0.04 of its total potential returns per unit of risk. iShares ESG MSCI is currently generating about 0.33 per unit of volatility. If you would invest 10,091 in iShares ESG MSCI on September 2, 2024 and sell it today you would earn a total of 577.00 from holding iShares ESG MSCI or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 15x Long vs. iShares ESG MSCI
Performance |
| Timeline |
| GraniteShares 15x Long |
| iShares ESG MSCI |
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.| 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 ESG vs. Xtrackers MSCI USA | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |