Correlation Between Bitwise Crypto and IShares Blockchain
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and IShares Blockchain 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 IShares Blockchain 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 iShares Blockchain and, you can compare the effects of market volatilities on Bitwise Crypto and IShares Blockchain 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 IShares Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and IShares Blockchain.
Diversification Opportunities for Bitwise Crypto and IShares Blockchain
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitwise and IShares is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and iShares Blockchain and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Blockchain and 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 IShares Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Blockchain and has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and IShares Blockchain go up and down completely randomly.
Pair Corralation between Bitwise Crypto and IShares Blockchain
Given the investment horizon of 90 days Bitwise Crypto Industry is expected to generate 1.04 times more return on investment than IShares Blockchain. However, Bitwise Crypto is 1.04 times more volatile than iShares Blockchain and. It trades about 0.0 of its potential returns per unit of risk. iShares Blockchain and is currently generating about -0.01 per unit of risk. If you would invest 1,933 in Bitwise Crypto Industry on November 18, 2024 and sell it today you would lose (94.00) from holding Bitwise Crypto Industry or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Crypto Industry vs. iShares Blockchain and
Performance |
| Timeline |
| Bitwise Crypto Industry |
| iShares Blockchain and |
Bitwise Crypto and IShares Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and IShares Blockchain
The main advantage of trading using opposite Bitwise Crypto and IShares Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, IShares Blockchain 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 IShares Blockchain will offset losses from the drop in IShares Blockchain'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 |
| IShares Blockchain vs. Fidelity Crypto Industry | IShares Blockchain vs. iShares Emergent Food | IShares Blockchain vs. Valkyrie Bitcoin Miners | IShares Blockchain 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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