Correlation Between Bitwise Crypto and Vanguard Long
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and Vanguard Long 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 Bitwise Crypto and Vanguard Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitwise Crypto Industry and Vanguard Long Term Bond, you can compare the effects of market volatilities on Bitwise Crypto and Vanguard Long 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 Bitwise Crypto with a short position of Vanguard Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and Vanguard Long.
Diversification Opportunities for Bitwise Crypto and Vanguard Long
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitwise and Vanguard is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and Vanguard Long Term Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Long Term and Bitwise Crypto 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 Bitwise Crypto Industry are associated (or correlated) with Vanguard Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Long Term has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and Vanguard Long go up and down completely randomly.
Pair Corralation between Bitwise Crypto and Vanguard Long
Given the investment horizon of 90 days Bitwise Crypto Industry is expected to generate 7.84 times more return on investment than Vanguard Long. However, Bitwise Crypto is 7.84 times more volatile than Vanguard Long Term Bond. It trades about 0.2 of its potential returns per unit of risk. Vanguard Long Term Bond is currently generating about -0.05 per unit of risk. If you would invest 1,648 in Bitwise Crypto Industry on August 27, 2024 and sell it today you would earn a total of 410.00 from holding Bitwise Crypto Industry or generate 24.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Crypto Industry vs. Vanguard Long Term Bond
Performance |
| Timeline |
| Bitwise Crypto Industry |
| Vanguard Long Term |
Bitwise Crypto and Vanguard Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and Vanguard Long
The main advantage of trading using opposite Bitwise Crypto and Vanguard Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, Vanguard Long 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 Vanguard Long will offset losses from the drop in Vanguard Long's long position.| Bitwise Crypto vs. Bitwise 10 Crypto | Bitwise Crypto vs. VanEck Digital Transformation | Bitwise Crypto vs. Global X Blockchain | Bitwise Crypto vs. First Trust Indxx |
| Vanguard Long vs. Vanguard Intermediate Term Bond | Vanguard Long vs. Vanguard Short Term Bond | Vanguard Long vs. Vanguard Long Term Corporate | Vanguard Long vs. Vanguard Long Term Treasury |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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