Correlation Between Siren Nasdaq and IShares Bitcoin
Can any of the company-specific risk be diversified away by investing in both Siren Nasdaq and IShares 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 IShares 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 iShares Bitcoin Trust, you can compare the effects of market volatilities on Siren Nasdaq and IShares 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 IShares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siren Nasdaq and IShares Bitcoin.
Diversification Opportunities for Siren Nasdaq and IShares Bitcoin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siren and IShares is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Siren Nasdaq NexGen and iShares Bitcoin Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Bitcoin Trust 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 IShares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Bitcoin Trust has no effect on the direction of Siren Nasdaq i.e., Siren Nasdaq and IShares Bitcoin go up and down completely randomly.
Pair Corralation between Siren Nasdaq and IShares Bitcoin
Given the investment horizon of 90 days Siren Nasdaq is expected to generate 3.47 times less return on investment than IShares Bitcoin. But when comparing it to its historical volatility, Siren Nasdaq NexGen is 1.65 times less risky than IShares Bitcoin. It trades about 0.03 of its potential returns per unit of risk. iShares Bitcoin Trust is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,961 in iShares Bitcoin Trust on August 30, 2024 and sell it today you would earn a total of 2,542 from holding iShares Bitcoin Trust or generate 85.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 65.05% |
| Values | Daily Returns |
Siren Nasdaq NexGen vs. iShares Bitcoin Trust
Performance |
| Timeline |
| Siren Nasdaq NexGen |
| iShares Bitcoin Trust |
Siren Nasdaq and IShares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siren Nasdaq and IShares Bitcoin
The main advantage of trading using opposite Siren Nasdaq and IShares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siren Nasdaq position performs unexpectedly, IShares 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 IShares Bitcoin will offset losses from the drop in IShares 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 |
| IShares Bitcoin vs. ProShares Trust | IShares Bitcoin vs. iShares Ethereum Trust | IShares Bitcoin vs. ProShares Trust | IShares Bitcoin vs. Grayscale Ethereum Trust |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |