Correlation Between Bitwise Crypto and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and SPDR Barclays 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 SPDR Barclays 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 SPDR Barclays Long, you can compare the effects of market volatilities on Bitwise Crypto and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and SPDR Barclays.
Diversification Opportunities for Bitwise Crypto and SPDR Barclays
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitwise and SPDR is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and SPDR Barclays Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Long 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 SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Long has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and SPDR Barclays go up and down completely randomly.
Pair Corralation between Bitwise Crypto and SPDR Barclays
Given the investment horizon of 90 days Bitwise Crypto Industry is expected to generate 6.97 times more return on investment than SPDR Barclays. However, Bitwise Crypto is 6.97 times more volatile than SPDR Barclays Long. It trades about 0.2 of its potential returns per unit of risk. SPDR Barclays Long is currently generating about 0.09 per unit of risk. If you would invest 1,648 in Bitwise Crypto Industry on August 28, 2024 and sell it today you would earn a total of 410.00 from holding Bitwise Crypto Industry or generate 24.88% 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. SPDR Barclays Long
Performance |
| Timeline |
| Bitwise Crypto Industry |
| SPDR Barclays Long |
Bitwise Crypto and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and SPDR Barclays
The main advantage of trading using opposite Bitwise Crypto and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' 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 |
| SPDR Barclays vs. iShares 10 Year | SPDR Barclays vs. SPDR Barclays Intermediate | SPDR Barclays vs. SPDR Barclays Short | SPDR Barclays vs. FlexShares Credit Scored Long |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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