Correlation Between Bitwise Crypto and IShares Core
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and IShares Core 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 Core 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 Core 10, you can compare the effects of market volatilities on Bitwise Crypto and IShares Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and IShares Core.
Diversification Opportunities for Bitwise Crypto and IShares Core
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitwise and IShares is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and iShares Core 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core 10 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core 10 has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and IShares Core go up and down completely randomly.
Pair Corralation between Bitwise Crypto and IShares Core
Given the investment horizon of 90 days Bitwise Crypto Industry is expected to generate 6.09 times more return on investment than IShares Core. However, Bitwise Crypto is 6.09 times more volatile than iShares Core 10. It trades about 0.1 of its potential returns per unit of risk. iShares Core 10 is currently generating about 0.04 per unit of risk. If you would invest 828.00 in Bitwise Crypto Industry on August 24, 2024 and sell it today you would earn a total of 1,142 from holding Bitwise Crypto Industry or generate 137.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Bitwise Crypto Industry vs. iShares Core 10
Performance |
| Timeline |
| Bitwise Crypto Industry |
| iShares Core 10 |
Bitwise Crypto and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and IShares Core
The main advantage of trading using opposite Bitwise Crypto and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core'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 Core vs. iShares Core 1 5 | IShares Core vs. iShares Agency Bond | IShares Core vs. iShares Intermediate GovernmentCredit | IShares Core vs. iShares GNMA 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |