Correlation Between GraniteShares 125x and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both GraniteShares 125x and IShares MSCI 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 125x and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 125x Long and iShares MSCI USA, you can compare the effects of market volatilities on GraniteShares 125x and IShares MSCI 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 125x with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares 125x and IShares MSCI.
Diversification Opportunities for GraniteShares 125x and IShares MSCI
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GraniteShares and IShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 125x Long and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA and GraniteShares 125x 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 125x Long are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI USA has no effect on the direction of GraniteShares 125x i.e., GraniteShares 125x and IShares MSCI go up and down completely randomly.
Pair Corralation between GraniteShares 125x and IShares MSCI
Considering the 90-day investment horizon GraniteShares 125x Long is expected to generate 5.02 times more return on investment than IShares MSCI. However, GraniteShares 125x is 5.02 times more volatile than iShares MSCI USA. It trades about 0.19 of its potential returns per unit of risk. iShares MSCI USA is currently generating about 0.12 per unit of risk. If you would invest 911.00 in GraniteShares 125x Long on October 18, 2024 and sell it today you would earn a total of 1,027 from holding GraniteShares 125x Long or generate 112.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 125x Long vs. iShares MSCI USA
Performance |
| Timeline |
| GraniteShares 125x Long |
| iShares MSCI USA |
GraniteShares 125x and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares 125x and IShares MSCI
The main advantage of trading using opposite GraniteShares 125x and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 125x position performs unexpectedly, IShares MSCI 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 MSCI will offset losses from the drop in IShares MSCI's long position.| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
| IShares MSCI vs. JPMorgan Fundamental Data | IShares MSCI vs. Matthews China Discovery | IShares MSCI vs. Davis Select International | IShares MSCI vs. Dimensional ETF Trust |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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