Correlation Between ProShares Bitcoin and Clarkston Founders
Can any of the company-specific risk be diversified away by investing in both ProShares Bitcoin and Clarkston Founders 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 ProShares Bitcoin and Clarkston Founders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Bitcoin Strategy and Clarkston Founders, you can compare the effects of market volatilities on ProShares Bitcoin and Clarkston Founders 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 ProShares Bitcoin with a short position of Clarkston Founders. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Bitcoin and Clarkston Founders.
Diversification Opportunities for ProShares Bitcoin and Clarkston Founders
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and Clarkston is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Bitcoin Strategy and Clarkston Founders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarkston Founders and ProShares 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 ProShares Bitcoin Strategy are associated (or correlated) with Clarkston Founders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarkston Founders has no effect on the direction of ProShares Bitcoin i.e., ProShares Bitcoin and Clarkston Founders go up and down completely randomly.
Pair Corralation between ProShares Bitcoin and Clarkston Founders
Given the investment horizon of 90 days ProShares Bitcoin Strategy is expected to generate 5.15 times more return on investment than Clarkston Founders. However, ProShares Bitcoin is 5.15 times more volatile than Clarkston Founders. It trades about 0.08 of its potential returns per unit of risk. Clarkston Founders is currently generating about 0.07 per unit of risk. If you would invest 1,745 in ProShares Bitcoin Strategy on September 1, 2024 and sell it today you would earn a total of 869.00 from holding ProShares Bitcoin Strategy or generate 49.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
ProShares Bitcoin Strategy vs. Clarkston Founders
Performance |
| Timeline |
| ProShares Bitcoin |
| Clarkston Founders |
ProShares Bitcoin and Clarkston Founders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Bitcoin and Clarkston Founders
The main advantage of trading using opposite ProShares Bitcoin and Clarkston Founders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Bitcoin position performs unexpectedly, Clarkston Founders 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 Clarkston Founders will offset losses from the drop in Clarkston Founders' long position.| ProShares Bitcoin vs. Grayscale Bitcoin Trust | ProShares Bitcoin vs. Grayscale Ethereum Trust | ProShares Bitcoin vs. Coinbase Global | ProShares Bitcoin vs. Valkyrie Bitcoin Strategy |
| Clarkston Founders vs. Clarkston Partners Fund | Clarkston Founders vs. Clarkston Founders Fund | Clarkston Founders vs. Clarkston Fund Institutional | Clarkston Founders vs. Clarkston Partners Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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