Correlation Between Siren Nasdaq and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both Siren Nasdaq and STKD 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 STKD 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 STKD Bitcoin Gold, you can compare the effects of market volatilities on Siren Nasdaq and STKD 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 STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siren Nasdaq and STKD Bitcoin.
Diversification Opportunities for Siren Nasdaq and STKD Bitcoin
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siren and STKD is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Siren Nasdaq NexGen and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold 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 STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of Siren Nasdaq i.e., Siren Nasdaq and STKD Bitcoin go up and down completely randomly.
Pair Corralation between Siren Nasdaq and STKD Bitcoin
Given the investment horizon of 90 days Siren Nasdaq NexGen is expected to under-perform the STKD Bitcoin. But the etf apears to be less risky and, when comparing its historical volatility, Siren Nasdaq NexGen is 1.69 times less risky than STKD Bitcoin. The etf trades about -0.52 of its potential returns per unit of risk. The STKD Bitcoin Gold is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest 3,009 in STKD Bitcoin Gold on December 11, 2024 and sell it today you would lose (635.00) from holding STKD Bitcoin Gold or give up 21.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siren Nasdaq NexGen vs. STKD Bitcoin Gold
Performance |
| Timeline |
| Siren Nasdaq NexGen |
| STKD Bitcoin Gold |
Siren Nasdaq and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siren Nasdaq and STKD Bitcoin
The main advantage of trading using opposite Siren Nasdaq and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siren Nasdaq position performs unexpectedly, STKD 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.| Siren Nasdaq vs. Amplify Transformational Data | Siren Nasdaq vs. First Trust Indxx | Siren Nasdaq vs. Global X Robotics | Siren Nasdaq vs. Bitwise Crypto Industry |
| STKD Bitcoin vs. Strategy Shares | STKD Bitcoin vs. Freedom Day Dividend | STKD Bitcoin vs. iShares MSCI China | STKD Bitcoin vs. Tidal Trust II |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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