Correlation Between Bitwise Crypto and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and Exchange Traded 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 Exchange Traded 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 Exchange Traded Concepts, you can compare the effects of market volatilities on Bitwise Crypto and Exchange Traded 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 Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and Exchange Traded.
Diversification Opportunities for Bitwise Crypto and Exchange Traded
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bitwise and Exchange is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and Exchange Traded go up and down completely randomly.
Pair Corralation between Bitwise Crypto and Exchange Traded
If you would invest 1,782 in Bitwise Crypto Industry on October 23, 2024 and sell it today you would earn a total of 183.00 from holding Bitwise Crypto Industry or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Bitwise Crypto Industry vs. Exchange Traded Concepts
Performance |
| Timeline |
| Bitwise Crypto Industry |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitwise Crypto and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and Exchange Traded
The main advantage of trading using opposite Bitwise Crypto and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded'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 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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