Correlation Between ProShares Bitcoin and Valkyrie Bitcoin
Can any of the company-specific risk be diversified away by investing in both ProShares Bitcoin and Valkyrie 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 ProShares Bitcoin and Valkyrie Bitcoin 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 Valkyrie Bitcoin Miners, you can compare the effects of market volatilities on ProShares Bitcoin and Valkyrie 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 ProShares Bitcoin with a short position of Valkyrie Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Bitcoin and Valkyrie Bitcoin.
Diversification Opportunities for ProShares Bitcoin and Valkyrie Bitcoin
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and Valkyrie is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Bitcoin Strategy and Valkyrie Bitcoin Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valkyrie Bitcoin Miners 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 Valkyrie Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valkyrie Bitcoin Miners has no effect on the direction of ProShares Bitcoin i.e., ProShares Bitcoin and Valkyrie Bitcoin go up and down completely randomly.
Pair Corralation between ProShares Bitcoin and Valkyrie Bitcoin
Given the investment horizon of 90 days ProShares Bitcoin Strategy is expected to generate 0.61 times more return on investment than Valkyrie Bitcoin. However, ProShares Bitcoin Strategy is 1.64 times less risky than Valkyrie Bitcoin. It trades about 0.44 of its potential returns per unit of risk. Valkyrie Bitcoin Miners is currently generating about 0.13 per unit of risk. If you would invest 1,880 in ProShares Bitcoin Strategy on August 27, 2024 and sell it today you would earn a total of 789.00 from holding ProShares Bitcoin Strategy or generate 41.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Bitcoin Strategy vs. Valkyrie Bitcoin Miners
Performance |
| Timeline |
| ProShares Bitcoin |
| Valkyrie Bitcoin Miners |
ProShares Bitcoin and Valkyrie Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Bitcoin and Valkyrie Bitcoin
The main advantage of trading using opposite ProShares Bitcoin and Valkyrie Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Bitcoin position performs unexpectedly, Valkyrie 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 Valkyrie Bitcoin will offset losses from the drop in Valkyrie Bitcoin's long position.| ProShares Bitcoin vs. Grayscale Bitcoin Trust | ProShares Bitcoin vs. Siren Nasdaq NexGen | ProShares Bitcoin vs. Grayscale Bitcoin Mini | ProShares Bitcoin vs. First Trust SkyBridge |
| Valkyrie Bitcoin vs. VanEck Digital Transformation | Valkyrie Bitcoin vs. Bitwise Crypto Industry | Valkyrie Bitcoin vs. Valkyrie Bitcoin Strategy | Valkyrie Bitcoin vs. Stronghold Digital Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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