Correlation Between Bitwise 10 and Pimco New
Can any of the company-specific risk be diversified away by investing in both Bitwise 10 and Pimco New 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 Pimco New 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 Pimco New York, you can compare the effects of market volatilities on Bitwise 10 and Pimco New 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 Pimco New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise 10 and Pimco New.
Diversification Opportunities for Bitwise 10 and Pimco New
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitwise and Pimco is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise 10 Crypto and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco New York 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 Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of Bitwise 10 i.e., Bitwise 10 and Pimco New go up and down completely randomly.
Pair Corralation between Bitwise 10 and Pimco New
Given the investment horizon of 90 days Bitwise 10 Crypto is expected to generate 5.18 times more return on investment than Pimco New. However, Bitwise 10 is 5.18 times more volatile than Pimco New York. It trades about 0.15 of its potential returns per unit of risk. Pimco New York is currently generating about 0.02 per unit of risk. If you would invest 1,225 in Bitwise 10 Crypto on August 27, 2024 and sell it today you would earn a total of 4,664 from holding Bitwise 10 Crypto or generate 380.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise 10 Crypto vs. Pimco New York
Performance |
| Timeline |
| Bitwise 10 Crypto |
| Pimco New York |
Bitwise 10 and Pimco New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise 10 and Pimco New
The main advantage of trading using opposite Bitwise 10 and Pimco New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise 10 position performs unexpectedly, Pimco New 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 Pimco New will offset losses from the drop in Pimco New'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 |
| Pimco New vs. Invesco Pennsylvania Value | Pimco New vs. Blackrock Muniholdings Ny | Pimco New vs. Eaton Vance National | Pimco New vs. Nuveen New York |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |