Correlation Between Bitwise Crypto and VanEck Green
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and VanEck Green 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 VanEck Green 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 VanEck Green Bond, you can compare the effects of market volatilities on Bitwise Crypto and VanEck Green 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 VanEck Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and VanEck Green.
Diversification Opportunities for Bitwise Crypto and VanEck Green
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitwise and VanEck is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and VanEck Green Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Green Bond 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 VanEck Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Green Bond has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and VanEck Green go up and down completely randomly.
Pair Corralation between Bitwise Crypto and VanEck Green
Given the investment horizon of 90 days Bitwise Crypto Industry is expected to generate 13.54 times more return on investment than VanEck Green. However, Bitwise Crypto is 13.54 times more volatile than VanEck Green Bond. It trades about 0.09 of its potential returns per unit of risk. VanEck Green Bond is currently generating about 0.06 per unit of risk. If you would invest 442.00 in Bitwise Crypto Industry on August 23, 2024 and sell it today you would earn a total of 1,528 from holding Bitwise Crypto Industry or generate 345.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Crypto Industry vs. VanEck Green Bond
Performance |
| Timeline |
| Bitwise Crypto Industry |
| VanEck Green Bond |
Bitwise Crypto and VanEck Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and VanEck Green
The main advantage of trading using opposite Bitwise Crypto and VanEck Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, VanEck Green 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 VanEck Green will offset losses from the drop in VanEck Green's long position.| Bitwise Crypto vs. ProShares Bitcoin Strategy | Bitwise Crypto vs. Bitwise 10 Crypto | Bitwise Crypto vs. Global X Blockchain |
| VanEck Green vs. iShares USD Green | VanEck Green vs. First Trust California | VanEck Green vs. Great Southern Bancorp | VanEck Green vs. VanEck China Bond |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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