Correlation Between ProShares Bitcoin and XBTF
Can any of the company-specific risk be diversified away by investing in both ProShares Bitcoin and XBTF 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 XBTF 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 XBTF, you can compare the effects of market volatilities on ProShares Bitcoin and XBTF 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 XBTF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Bitcoin and XBTF.
Diversification Opportunities for ProShares Bitcoin and XBTF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ProShares and XBTF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Bitcoin Strategy and XBTF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XBTF 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 XBTF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XBTF has no effect on the direction of ProShares Bitcoin i.e., ProShares Bitcoin and XBTF go up and down completely randomly.
Pair Corralation between ProShares Bitcoin and XBTF
If you would invest (100.00) in XBTF on November 28, 2024 and sell it today you would earn a total of 100.00 from holding XBTF or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ProShares Bitcoin Strategy vs. XBTF
Performance |
| Timeline |
| ProShares Bitcoin |
| XBTF |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ProShares Bitcoin and XBTF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Bitcoin and XBTF
The main advantage of trading using opposite ProShares Bitcoin and XBTF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Bitcoin position performs unexpectedly, XBTF 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 XBTF will offset losses from the drop in XBTF's 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 |
| XBTF vs. Valkyrie Bitcoin Strategy | XBTF vs. Global X Blockchain | XBTF vs. Bitwise Crypto Industry | XBTF vs. VanEck Digital Transformation |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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