Correlation Between Bitwise 10 and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Bitwise 10 and Barings Emerging 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 10 and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitwise 10 Crypto and Barings Emerging Markets, you can compare the effects of market volatilities on Bitwise 10 and Barings Emerging 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 10 with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise 10 and Barings Emerging.
Diversification Opportunities for Bitwise 10 and Barings Emerging
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitwise and Barings is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise 10 Crypto and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets and Bitwise 10 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 10 Crypto are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Bitwise 10 i.e., Bitwise 10 and Barings Emerging go up and down completely randomly.
Pair Corralation between Bitwise 10 and Barings Emerging
Given the investment horizon of 90 days Bitwise 10 Crypto is expected to generate 10.32 times more return on investment than Barings Emerging. However, Bitwise 10 is 10.32 times more volatile than Barings Emerging Markets. It trades about 0.12 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.05 per unit of risk. If you would invest 2,879 in Bitwise 10 Crypto on August 27, 2024 and sell it today you would earn a total of 3,010 from holding Bitwise 10 Crypto or generate 104.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise 10 Crypto vs. Barings Emerging Markets
Performance |
| Timeline |
| Bitwise 10 Crypto |
| Barings Emerging Markets |
Bitwise 10 and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise 10 and Barings Emerging
The main advantage of trading using opposite Bitwise 10 and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise 10 position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Bitwise 10 vs. Grayscale Digital Large | Bitwise 10 vs. Grayscale Ethereum Trust | Bitwise 10 vs. Grayscale Litecoin Trust | Bitwise 10 vs. Grayscale Bitcoin Cash |
| Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Emerging Markets | Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Global Floating |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |