Correlation Between Global X and IShares Ethereum
Can any of the company-specific risk be diversified away by investing in both Global X and IShares Ethereum 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 IShares Ethereum 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 iShares Ethereum Trust, you can compare the effects of market volatilities on Global X and IShares Ethereum 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 IShares Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and IShares Ethereum.
Diversification Opportunities for Global X and IShares Ethereum
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and IShares is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain and iShares Ethereum Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Ethereum Trust 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 IShares Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Ethereum Trust has no effect on the direction of Global X i.e., Global X and IShares Ethereum go up and down completely randomly.
Pair Corralation between Global X and IShares Ethereum
Given the investment horizon of 90 days Global X is expected to generate 1.32 times less return on investment than IShares Ethereum. In addition to that, Global X is 1.24 times more volatile than iShares Ethereum Trust. It trades about 0.17 of its total potential returns per unit of risk. iShares Ethereum Trust is currently generating about 0.28 per unit of volatility. If you would invest 2,013 in iShares Ethereum Trust on August 31, 2024 and sell it today you would earn a total of 747.00 from holding iShares Ethereum Trust or generate 37.11% 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. iShares Ethereum Trust
Performance |
| Timeline |
| Global X Blockchain |
| iShares Ethereum Trust |
Global X and IShares Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and IShares Ethereum
The main advantage of trading using opposite Global X and IShares Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, IShares Ethereum 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 IShares Ethereum will offset losses from the drop in IShares Ethereum's long position.| Global X vs. VanEck Digital Transformation | Global X vs. Bitwise Crypto Industry | Global X vs. First Trust Indxx | Global X vs. First Trust SkyBridge |
| IShares Ethereum vs. Amplify Transformational Data | IShares Ethereum vs. Global X Blockchain | IShares Ethereum vs. VanEck Digital Transformation |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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