Correlation Between Global X and Bitwise Crypto
Can any of the company-specific risk be diversified away by investing in both Global X and Bitwise Crypto 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 Bitwise Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Robotics and Bitwise Crypto Industry, you can compare the effects of market volatilities on Global X and Bitwise Crypto 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 Bitwise Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Bitwise Crypto.
Diversification Opportunities for Global X and Bitwise Crypto
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Bitwise is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Global X Robotics and Bitwise Crypto Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Crypto Industry 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 Robotics are associated (or correlated) with Bitwise Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Crypto Industry has no effect on the direction of Global X i.e., Global X and Bitwise Crypto go up and down completely randomly.
Pair Corralation between Global X and Bitwise Crypto
Given the investment horizon of 90 days Global X is expected to generate 2.2 times less return on investment than Bitwise Crypto. But when comparing it to its historical volatility, Global X Robotics is 2.63 times less risky than Bitwise Crypto. It trades about 0.19 of its potential returns per unit of risk. Bitwise Crypto Industry is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,782 in Bitwise Crypto Industry on October 23, 2024 and sell it today you would earn a total of 183.00 from holding Bitwise Crypto Industry or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Robotics vs. Bitwise Crypto Industry
Performance |
| Timeline |
| Global X Robotics |
| Bitwise Crypto Industry |
Global X and Bitwise Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Bitwise Crypto
The main advantage of trading using opposite Global X and Bitwise Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Bitwise Crypto 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 Bitwise Crypto will offset losses from the drop in Bitwise Crypto's long position.| Global X vs. Robo Global Robotics | Global X vs. Global X Cloud | Global X vs. Global X Lithium | Global X vs. ARK Autonomous Technology |
| Bitwise Crypto vs. Bitwise 10 Crypto | Bitwise Crypto vs. VanEck Digital Transformation | Bitwise Crypto vs. Global X Blockchain | Bitwise Crypto vs. First Trust Indxx |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |