Correlation Between Bitwise 10 and VanEck Digital
Can any of the company-specific risk be diversified away by investing in both Bitwise 10 and VanEck Digital 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 VanEck Digital 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 VanEck Digital Transformation, you can compare the effects of market volatilities on Bitwise 10 and VanEck Digital 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 VanEck Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise 10 and VanEck Digital.
Diversification Opportunities for Bitwise 10 and VanEck Digital
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitwise and VanEck is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise 10 Crypto and VanEck Digital Transformation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Digital Trans 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 VanEck Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Digital Trans has no effect on the direction of Bitwise 10 i.e., Bitwise 10 and VanEck Digital go up and down completely randomly.
Pair Corralation between Bitwise 10 and VanEck Digital
Given the investment horizon of 90 days Bitwise 10 Crypto is expected to generate 0.61 times more return on investment than VanEck Digital. However, Bitwise 10 Crypto is 1.65 times less risky than VanEck Digital. It trades about 0.11 of its potential returns per unit of risk. VanEck Digital Transformation is currently generating about 0.04 per unit of risk. If you would invest 6,316 in Bitwise 10 Crypto on November 3, 2024 and sell it today you would earn a total of 409.00 from holding Bitwise 10 Crypto or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise 10 Crypto vs. VanEck Digital Transformation
Performance |
| Timeline |
| Bitwise 10 Crypto |
| VanEck Digital Trans |
Bitwise 10 and VanEck Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise 10 and VanEck Digital
The main advantage of trading using opposite Bitwise 10 and VanEck Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise 10 position performs unexpectedly, VanEck Digital 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 VanEck Digital will offset losses from the drop in VanEck Digital'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 |
| VanEck Digital vs. Bitwise Crypto Industry | VanEck Digital vs. Global X Blockchain | VanEck Digital vs. First Trust Indxx | VanEck Digital vs. First Trust SkyBridge |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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