Correlation Between Global X and Bitcoin Strategy
Can any of the company-specific risk be diversified away by investing in both Global X and Bitcoin Strategy 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 Global X and Bitcoin Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Blockchain and Bitcoin Strategy Profund, you can compare the effects of market volatilities on Global X and Bitcoin Strategy 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 Global X with a short position of Bitcoin Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Bitcoin Strategy.
Diversification Opportunities for Global X and Bitcoin Strategy
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Bitcoin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain and Bitcoin Strategy Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Strategy Profund and Global X 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 Global X Blockchain are associated (or correlated) with Bitcoin Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Strategy Profund has no effect on the direction of Global X i.e., Global X and Bitcoin Strategy go up and down completely randomly.
Pair Corralation between Global X and Bitcoin Strategy
Given the investment horizon of 90 days Global X is expected to generate 1.22 times less return on investment than Bitcoin Strategy. In addition to that, Global X is 1.59 times more volatile than Bitcoin Strategy Profund. It trades about 0.16 of its total potential returns per unit of risk. Bitcoin Strategy Profund is currently generating about 0.31 per unit of volatility. If you would invest 2,485 in Bitcoin Strategy Profund on August 30, 2024 and sell it today you would earn a total of 814.00 from holding Bitcoin Strategy Profund or generate 32.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Blockchain vs. Bitcoin Strategy Profund
Performance |
| Timeline |
| Global X Blockchain |
| Bitcoin Strategy Profund |
Global X and Bitcoin Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Bitcoin Strategy
The main advantage of trading using opposite Global X and Bitcoin Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Bitcoin Strategy 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 Bitcoin Strategy will offset losses from the drop in Bitcoin Strategy's long position.| Global X vs. Vanguard Industrials Index | Global X vs. Vanguard Consumer Discretionary | Global X vs. Vanguard Materials Index | Global X vs. Vanguard Health Care |
| Bitcoin Strategy vs. Fidelity Managed Retirement | Bitcoin Strategy vs. Transamerica Cleartrack Retirement | Bitcoin Strategy vs. Jp Morgan Smartretirement | Bitcoin Strategy vs. Pro Blend Moderate Term |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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