Correlation Between Pacer Trendpilot and GraniteShares ETF
Can any of the company-specific risk be diversified away by investing in both Pacer Trendpilot and GraniteShares ETF 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 Pacer Trendpilot and GraniteShares ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacer Trendpilot and GraniteShares ETF Trust, you can compare the effects of market volatilities on Pacer Trendpilot and GraniteShares ETF 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 Pacer Trendpilot with a short position of GraniteShares ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacer Trendpilot and GraniteShares ETF.
Diversification Opportunities for Pacer Trendpilot and GraniteShares ETF
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pacer and GraniteShares is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Pacer Trendpilot and GraniteShares ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares ETF Trust and Pacer Trendpilot 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 Pacer Trendpilot are associated (or correlated) with GraniteShares ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares ETF Trust has no effect on the direction of Pacer Trendpilot i.e., Pacer Trendpilot and GraniteShares ETF go up and down completely randomly.
Pair Corralation between Pacer Trendpilot and GraniteShares ETF
Given the investment horizon of 90 days Pacer Trendpilot is expected to generate 1.95 times less return on investment than GraniteShares ETF. But when comparing it to its historical volatility, Pacer Trendpilot is 1.55 times less risky than GraniteShares ETF. It trades about 0.08 of its potential returns per unit of risk. GraniteShares ETF Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,278 in GraniteShares ETF Trust on August 17, 2025 and sell it today you would earn a total of 383.00 from holding GraniteShares ETF Trust or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacer Trendpilot vs. GraniteShares ETF Trust
Performance |
| Timeline |
| Pacer Trendpilot |
| GraniteShares ETF Trust |
Pacer Trendpilot and GraniteShares ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacer Trendpilot and GraniteShares ETF
The main advantage of trading using opposite Pacer Trendpilot and GraniteShares ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacer Trendpilot position performs unexpectedly, GraniteShares ETF 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 ETF will offset losses from the drop in GraniteShares ETF's long position.| Pacer Trendpilot vs. WisdomTree Target Range | Pacer Trendpilot vs. GraniteShares ETF Trust | Pacer Trendpilot vs. The Advisorsa Inner | Pacer Trendpilot vs. Impact Shares YWCA |
| GraniteShares ETF vs. SPDR Galaxy Digital | GraniteShares ETF vs. WisdomTree New Economy | GraniteShares ETF vs. First Trust Exchange Traded | GraniteShares ETF vs. Innovator ETFs 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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