Correlation Between Xtrackers MSCI and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and GraniteShares 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 Xtrackers MSCI and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers MSCI World and GraniteShares 3x Short, you can compare the effects of market volatilities on Xtrackers MSCI and GraniteShares 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 Xtrackers MSCI with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and GraniteShares.
Diversification Opportunities for Xtrackers MSCI and GraniteShares
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and GraniteShares is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI World and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short and Xtrackers MSCI 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 Xtrackers MSCI World are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and GraniteShares go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and GraniteShares
Assuming the 90 days trading horizon Xtrackers MSCI World is expected to generate 0.14 times more return on investment than GraniteShares. However, Xtrackers MSCI World is 7.34 times less risky than GraniteShares. It trades about 0.03 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.09 per unit of risk. If you would invest 9,228 in Xtrackers MSCI World on November 28, 2024 and sell it today you would earn a total of 75.00 from holding Xtrackers MSCI World or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers MSCI World vs. GraniteShares 3x Short
Performance |
| Timeline |
| Xtrackers MSCI World |
| GraniteShares 3x Short |
Xtrackers MSCI and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and GraniteShares
The main advantage of trading using opposite Xtrackers MSCI and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| Xtrackers MSCI vs. Xtrackers MSCI | Xtrackers MSCI vs. Xtrackers FTSE 250 | Xtrackers MSCI vs. Xtrackers Ie Plc | Xtrackers MSCI vs. Xtrackers Russell 2000 |
| GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Short |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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