Correlation Between Bitwise 10 and Via Renewables
Can any of the company-specific risk be diversified away by investing in both Bitwise 10 and Via Renewables 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 Via Renewables 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 Via Renewables, you can compare the effects of market volatilities on Bitwise 10 and Via Renewables 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 Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise 10 and Via Renewables.
Diversification Opportunities for Bitwise 10 and Via Renewables
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitwise and Via is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise 10 Crypto and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Bitwise 10 i.e., Bitwise 10 and Via Renewables go up and down completely randomly.
Pair Corralation between Bitwise 10 and Via Renewables
Given the investment horizon of 90 days Bitwise 10 Crypto is expected to generate 1.97 times more return on investment than Via Renewables. However, Bitwise 10 is 1.97 times more volatile than Via Renewables. It trades about 0.14 of its potential returns per unit of risk. Via Renewables is currently generating about 0.08 per unit of risk. If you would invest 2,188 in Bitwise 10 Crypto on November 1, 2024 and sell it today you would earn a total of 4,524 from holding Bitwise 10 Crypto or generate 206.76% 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. Via Renewables
Performance |
| Timeline |
| Bitwise 10 Crypto |
| Via Renewables |
Bitwise 10 and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise 10 and Via Renewables
The main advantage of trading using opposite Bitwise 10 and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise 10 position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' 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 |
| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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