Correlation Between 21Shares Bitcoin and 21Shares Ethereum
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By analyzing existing cross correlation between 21Shares Bitcoin ETP and 21Shares Ethereum Staking, you can compare the effects of market volatilities on 21Shares Bitcoin and 21Shares Ethereum 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 21Shares Bitcoin with a short position of 21Shares Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Bitcoin and 21Shares Ethereum.
Diversification Opportunities for 21Shares Bitcoin and 21Shares Ethereum
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 21Shares and 21Shares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Bitcoin ETP and 21Shares Ethereum Staking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Ethereum Staking and 21Shares Bitcoin 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 21Shares Bitcoin ETP are associated (or correlated) with 21Shares Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Ethereum Staking has no effect on the direction of 21Shares Bitcoin i.e., 21Shares Bitcoin and 21Shares Ethereum go up and down completely randomly.
Pair Corralation between 21Shares Bitcoin and 21Shares Ethereum
Assuming the 90 days trading horizon 21Shares Bitcoin ETP is expected to generate 0.9 times more return on investment than 21Shares Ethereum. However, 21Shares Bitcoin ETP is 1.11 times less risky than 21Shares Ethereum. It trades about 0.24 of its potential returns per unit of risk. 21Shares Ethereum Staking is currently generating about 0.01 per unit of risk. If you would invest 2,531 in 21Shares Bitcoin ETP on October 26, 2024 and sell it today you would earn a total of 358.00 from holding 21Shares Bitcoin ETP or generate 14.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.12% |
| Values | Daily Returns |
21Shares Bitcoin ETP vs. 21Shares Ethereum Staking
Performance |
| Timeline |
| 21Shares Bitcoin ETP |
| 21Shares Ethereum Staking |
21Shares Bitcoin and 21Shares Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Bitcoin and 21Shares Ethereum
The main advantage of trading using opposite 21Shares Bitcoin and 21Shares Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Bitcoin position performs unexpectedly, 21Shares Ethereum 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 21Shares Ethereum will offset losses from the drop in 21Shares Ethereum's long position.| 21Shares Bitcoin vs. 21Shares Polygon ETP | 21Shares Bitcoin vs. 21Shares Ethereum Core | 21Shares Bitcoin vs. 21Shares Tezos staking | 21Shares Bitcoin vs. 21Shares Bytetree BOLD |
| 21Shares Ethereum vs. 21Shares Polygon ETP | 21Shares Ethereum vs. 21Shares Ethereum Core | 21Shares Ethereum vs. 21Shares Tezos staking | 21Shares Ethereum vs. 21Shares Bitcoin ETP |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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