Correlation Between ARK Next and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both ARK Next and STKD Bitcoin 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 ARK Next and STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARK Next Generation and STKD Bitcoin Gold, you can compare the effects of market volatilities on ARK Next and STKD Bitcoin 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 ARK Next with a short position of STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARK Next and STKD Bitcoin.
Diversification Opportunities for ARK Next and STKD Bitcoin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ARK and STKD is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ARK Next Generation and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold and ARK Next 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 ARK Next Generation are associated (or correlated) with STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of ARK Next i.e., ARK Next and STKD Bitcoin go up and down completely randomly.
Pair Corralation between ARK Next and STKD Bitcoin
Given the investment horizon of 90 days ARK Next Generation is expected to generate 0.69 times more return on investment than STKD Bitcoin. However, ARK Next Generation is 1.45 times less risky than STKD Bitcoin. It trades about 0.25 of its potential returns per unit of risk. STKD Bitcoin Gold is currently generating about 0.15 per unit of risk. If you would invest 10,913 in ARK Next Generation on November 3, 2024 and sell it today you would earn a total of 1,131 from holding ARK Next Generation or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARK Next Generation vs. STKD Bitcoin Gold
Performance |
| Timeline |
| ARK Next Generation |
| STKD Bitcoin Gold |
ARK Next and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARK Next and STKD Bitcoin
The main advantage of trading using opposite ARK Next and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARK Next position performs unexpectedly, STKD Bitcoin 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.| ARK Next vs. ARK Autonomous Technology | ARK Next vs. ARK Genomic Revolution | ARK Next vs. ARK Fintech Innovation | ARK Next vs. ARK Innovation ETF |
| STKD Bitcoin vs. First Trust Multi Asset | STKD Bitcoin vs. Collaborative Investment Series | STKD Bitcoin vs. Northern Lights | STKD Bitcoin vs. Ocean Park International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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