Correlation Between Siren Nasdaq and Valkyrie Bitcoin
Can any of the company-specific risk be diversified away by investing in both Siren Nasdaq 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 Siren Nasdaq and Valkyrie Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siren Nasdaq NexGen and Valkyrie Bitcoin Strategy, you can compare the effects of market volatilities on Siren Nasdaq 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 Siren Nasdaq with a short position of Valkyrie Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siren Nasdaq and Valkyrie Bitcoin.
Diversification Opportunities for Siren Nasdaq and Valkyrie Bitcoin
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siren and Valkyrie is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Siren Nasdaq NexGen 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 Siren Nasdaq 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 Siren Nasdaq NexGen 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 Siren Nasdaq i.e., Siren Nasdaq and Valkyrie Bitcoin go up and down completely randomly.
Pair Corralation between Siren Nasdaq and Valkyrie Bitcoin
Given the investment horizon of 90 days Siren Nasdaq is expected to generate 2.8 times less return on investment than Valkyrie Bitcoin. But when comparing it to its historical volatility, Siren Nasdaq NexGen is 1.38 times less risky than Valkyrie Bitcoin. It trades about 0.18 of its potential returns per unit of risk. Valkyrie Bitcoin Strategy is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,634 in Valkyrie Bitcoin Strategy on August 26, 2024 and sell it today you would earn a total of 651.00 from holding Valkyrie Bitcoin Strategy or generate 39.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siren Nasdaq NexGen vs. Valkyrie Bitcoin Strategy
Performance |
| Timeline |
| Siren Nasdaq NexGen |
| Valkyrie Bitcoin Strategy |
Siren Nasdaq and Valkyrie Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siren Nasdaq and Valkyrie Bitcoin
The main advantage of trading using opposite Siren Nasdaq and Valkyrie Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siren Nasdaq 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.| Siren Nasdaq vs. Grayscale Bitcoin Trust | Siren Nasdaq vs. Grayscale Bitcoin Mini | Siren Nasdaq vs. First Trust SkyBridge |
| Valkyrie Bitcoin vs. Grayscale Bitcoin Trust | Valkyrie Bitcoin vs. Siren Nasdaq NexGen | Valkyrie Bitcoin vs. Grayscale Bitcoin Mini | Valkyrie Bitcoin vs. First Trust SkyBridge |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |