Correlation Between Bitwise Crypto and US Global
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and US Global 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 US Global 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 US Global Jets, you can compare the effects of market volatilities on Bitwise Crypto and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and US Global.
Diversification Opportunities for Bitwise Crypto and US Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitwise and JETS is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and US Global Jets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Jets 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Jets has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and US Global go up and down completely randomly.
Pair Corralation between Bitwise Crypto and US Global
Given the investment horizon of 90 days Bitwise Crypto Industry is expected to generate 3.89 times more return on investment than US Global. However, Bitwise Crypto is 3.89 times more volatile than US Global Jets. It trades about 0.18 of its potential returns per unit of risk. US Global Jets is currently generating about 0.2 per unit of risk. If you would invest 1,654 in Bitwise Crypto Industry on August 30, 2024 and sell it today you would earn a total of 416.00 from holding Bitwise Crypto Industry or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Crypto Industry vs. US Global Jets
Performance |
| Timeline |
| Bitwise Crypto Industry |
| US Global Jets |
Bitwise Crypto and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and US Global
The main advantage of trading using opposite Bitwise Crypto and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global'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 |
| US Global vs. Invesco Solar ETF | US Global vs. iShares Global Clean | US Global vs. iShares Semiconductor ETF | US Global vs. Amplify ETF Trust |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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