Correlation Between Global X and Valkyrie Bitcoin
Can any of the company-specific risk be diversified away by investing in both Global X and Valkyrie Bitcoin 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 Valkyrie Bitcoin 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 Valkyrie Bitcoin Strategy, you can compare the effects of market volatilities on Global X and Valkyrie Bitcoin 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 Valkyrie Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Valkyrie Bitcoin.
Diversification Opportunities for Global X and Valkyrie Bitcoin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Valkyrie is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain and Valkyrie Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valkyrie Bitcoin Strategy 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 Valkyrie Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valkyrie Bitcoin Strategy has no effect on the direction of Global X i.e., Global X and Valkyrie Bitcoin go up and down completely randomly.
Pair Corralation between Global X and Valkyrie Bitcoin
Given the investment horizon of 90 days Global X Blockchain is expected to generate 1.41 times more return on investment than Valkyrie Bitcoin. However, Global X is 1.41 times more volatile than Valkyrie Bitcoin Strategy. It trades about 0.11 of its potential returns per unit of risk. Valkyrie Bitcoin Strategy is currently generating about 0.15 per unit of risk. If you would invest 4,895 in Global X Blockchain on August 23, 2024 and sell it today you would earn a total of 1,633 from holding Global X Blockchain or generate 33.36% 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. Valkyrie Bitcoin Strategy
Performance |
| Timeline |
| Global X Blockchain |
| Valkyrie Bitcoin Strategy |
Global X and Valkyrie Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Valkyrie Bitcoin
The main advantage of trading using opposite Global X and Valkyrie Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Valkyrie Bitcoin 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 Valkyrie Bitcoin will offset losses from the drop in Valkyrie Bitcoin'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 |
| Valkyrie Bitcoin vs. ProShares Bitcoin Strategy | Valkyrie Bitcoin vs. Bitwise 10 Crypto | Valkyrie Bitcoin vs. Global X Blockchain |
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 Stocks Directory module to find actively traded stocks across global markets.
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