Correlation Between 21Shares Polkadot and Global X
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By analyzing existing cross correlation between 21Shares Polkadot ETP and Global X Bitcoin, you can compare the effects of market volatilities on 21Shares Polkadot and Global X 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 Polkadot with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and Global X.
Diversification Opportunities for 21Shares Polkadot and Global X
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 21Shares and Global is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and Global X Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Bitcoin and 21Shares Polkadot 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 Polkadot ETP are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Bitcoin has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and Global X go up and down completely randomly.
Pair Corralation between 21Shares Polkadot and Global X
Assuming the 90 days trading horizon 21Shares Polkadot is expected to generate 3.28 times less return on investment than Global X. In addition to that, 21Shares Polkadot is 1.52 times more volatile than Global X Bitcoin. It trades about 0.02 of its total potential returns per unit of risk. Global X Bitcoin is currently generating about 0.12 per unit of volatility. If you would invest 1,994 in Global X Bitcoin on November 2, 2024 and sell it today you would earn a total of 7,671 from holding Global X Bitcoin or generate 384.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Polkadot ETP vs. Global X Bitcoin
Performance |
| Timeline |
| 21Shares Polkadot ETP |
| Global X Bitcoin |
21Shares Polkadot and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Polkadot and Global X
The main advantage of trading using opposite 21Shares Polkadot and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| 21Shares Polkadot vs. 21Shares Bitcoin Core | 21Shares Polkadot vs. 21Shares Crypto Basket | 21Shares Polkadot vs. 21Shares Staking Basket | 21Shares Polkadot vs. 21Shares Stellar ETP |
| Global X vs. Global X China | Global X vs. Global X Aave | Global X vs. Global X NASDAQ | Global X vs. Global X Cloud |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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