Correlation Between BTCI and ProShares
Can any of the company-specific risk be diversified away by investing in both BTCI and ProShares 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 BTCI and ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTCI and ProShares, you can compare the effects of market volatilities on BTCI and ProShares 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 BTCI with a short position of ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTCI and ProShares.
Diversification Opportunities for BTCI and ProShares
Pay attention - limited upside
The 3 months correlation between BTCI and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTCI and ProShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares and BTCI 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 BTCI are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares has no effect on the direction of BTCI i.e., BTCI and ProShares go up and down completely randomly.
Pair Corralation between BTCI and ProShares
If you would invest 5,823 in BTCI on September 12, 2024 and sell it today you would earn a total of 410.00 from holding BTCI or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BTCI vs. ProShares
Performance |
| Timeline |
| BTCI |
| ProShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BTCI and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTCI and ProShares
The main advantage of trading using opposite BTCI and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTCI position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| BTCI vs. Freedom Day Dividend | BTCI vs. Franklin Templeton ETF | BTCI vs. iShares MSCI China | BTCI 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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