Correlation Between 3iQ Bitcoin and Mackenzie TIPS
Can any of the company-specific risk be diversified away by investing in both 3iQ Bitcoin and Mackenzie TIPS 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 3iQ Bitcoin and Mackenzie TIPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3iQ Bitcoin ETF and Mackenzie TIPS Index, you can compare the effects of market volatilities on 3iQ Bitcoin and Mackenzie TIPS 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 3iQ Bitcoin with a short position of Mackenzie TIPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3iQ Bitcoin and Mackenzie TIPS.
Diversification Opportunities for 3iQ Bitcoin and Mackenzie TIPS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 3iQ and Mackenzie is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding 3iQ Bitcoin ETF and Mackenzie TIPS Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie TIPS Index and 3iQ Bitcoin 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 3iQ Bitcoin ETF are associated (or correlated) with Mackenzie TIPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie TIPS Index has no effect on the direction of 3iQ Bitcoin i.e., 3iQ Bitcoin and Mackenzie TIPS go up and down completely randomly.
Pair Corralation between 3iQ Bitcoin and Mackenzie TIPS
Assuming the 90 days trading horizon 3iQ Bitcoin ETF is expected to generate 11.67 times more return on investment than Mackenzie TIPS. However, 3iQ Bitcoin is 11.67 times more volatile than Mackenzie TIPS Index. It trades about 0.09 of its potential returns per unit of risk. Mackenzie TIPS Index is currently generating about 0.07 per unit of risk. If you would invest 1,567 in 3iQ Bitcoin ETF on September 3, 2024 and sell it today you would earn a total of 602.00 from holding 3iQ Bitcoin ETF or generate 38.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
3iQ Bitcoin ETF vs. Mackenzie TIPS Index
Performance |
| Timeline |
| 3iQ Bitcoin ETF |
| Mackenzie TIPS Index |
3iQ Bitcoin and Mackenzie TIPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3iQ Bitcoin and Mackenzie TIPS
The main advantage of trading using opposite 3iQ Bitcoin and Mackenzie TIPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3iQ Bitcoin position performs unexpectedly, Mackenzie TIPS 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 Mackenzie TIPS will offset losses from the drop in Mackenzie TIPS's long position.| 3iQ Bitcoin vs. 3iQ CoinShares Ether | 3iQ Bitcoin vs. NBI High Yield | 3iQ Bitcoin vs. NBI Unconstrained Fixed | 3iQ Bitcoin vs. Mackenzie Developed ex North |
| Mackenzie TIPS vs. First Asset Energy | Mackenzie TIPS vs. First Asset Tech | Mackenzie TIPS vs. Harvest Equal Weight | Mackenzie TIPS vs. CI Canada Lifeco |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |