Correlation Between GraniteShares Bloomberg and Abrdn Bloomberg

Can any of the company-specific risk be diversified away by investing in both GraniteShares Bloomberg and Abrdn Bloomberg 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 Bloomberg and Abrdn Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GraniteShares Bloomberg Commodity and abrdn Bloomberg All, you can compare the effects of market volatilities on GraniteShares Bloomberg and Abrdn Bloomberg 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 Bloomberg with a short position of Abrdn Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares Bloomberg and Abrdn Bloomberg.

Diversification Opportunities for GraniteShares Bloomberg and Abrdn Bloomberg

1.0

Correlation Coefficient

GraniteShares Bloomberg  Abrdn Bloomberg

No risk reduction

The 3 months correlation between GraniteShares and Abrdn is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares Bloomberg Commod and abrdn Bloomberg All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Bloomberg All and GraniteShares Bloomberg 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 Bloomberg Commodity are associated (or correlated) with Abrdn Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Bloomberg All has no effect on the direction of GraniteShares Bloomberg i.e., GraniteShares Bloomberg and Abrdn Bloomberg go up and down completely randomly.

Pair Corralation between GraniteShares Bloomberg and Abrdn Bloomberg

Given the investment horizon of 90 days GraniteShares Bloomberg is expected to generate 1.02 times less return on investment than Abrdn Bloomberg. But when comparing it to its historical volatility, GraniteShares Bloomberg Commodity is 1.01 times less risky than Abrdn Bloomberg. It trades about 0.19 of its potential returns per unit of risk. abrdn Bloomberg All is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,972  in abrdn Bloomberg All on December 30, 2024 and sell it today you would earn a total of  158.00  from holding abrdn Bloomberg All or generate 8.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

GraniteShares Bloomberg Commod  vs.  abrdn Bloomberg All

GraniteShares Bloomberg

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GraniteShares Bloomberg Commodity are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent primary indicators, GraniteShares Bloomberg may actually be approaching a critical reversion point that can send shares even higher in April 2025.

abrdn Bloomberg All

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Bloomberg All are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Abrdn Bloomberg may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GraniteShares Bloomberg and Abrdn Bloomberg

The main advantage of trading using opposite GraniteShares Bloomberg and Abrdn Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares Bloomberg position performs unexpectedly, Abrdn Bloomberg 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 Abrdn Bloomberg will offset losses from the drop in Abrdn Bloomberg's long position.

The idea behind GraniteShares Bloomberg Commodity and abrdn Bloomberg All pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.