Correlation Between BTCI and IShares Core
Can any of the company-specific risk be diversified away by investing in both BTCI and IShares Core 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 IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTCI and iShares Core MSCI, you can compare the effects of market volatilities on BTCI and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTCI and IShares Core.
Diversification Opportunities for BTCI and IShares Core
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BTCI and IShares is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BTCI and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of BTCI i.e., BTCI and IShares Core go up and down completely randomly.
Pair Corralation between BTCI and IShares Core
Given the investment horizon of 90 days BTCI is expected to generate 2.66 times more return on investment than IShares Core. However, BTCI is 2.66 times more volatile than iShares Core MSCI. It trades about 0.29 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.05 per unit of risk. If you would invest 4,721 in BTCI on September 13, 2024 and sell it today you would earn a total of 1,769 from holding BTCI or generate 37.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 32.0% |
| Values | Daily Returns |
BTCI vs. iShares Core MSCI
Performance |
| Timeline |
| BTCI |
| iShares Core MSCI |
BTCI and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTCI and IShares Core
The main advantage of trading using opposite BTCI and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTCI position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| BTCI vs. Grayscale Bitcoin Trust | BTCI vs. Siren Nasdaq NexGen | BTCI vs. First Trust Indxx | BTCI vs. Bitwise Crypto Industry |
| IShares Core vs. Vanguard FTSE Pacific | IShares Core vs. abrdn Bloomberg All | IShares Core vs. BTCI | IShares Core vs. Intel |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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