Correlation Between 3iQ Bitcoin and IShares SP
Can any of the company-specific risk be diversified away by investing in both 3iQ Bitcoin and IShares SP 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 IShares SP 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 iShares SP Small Cap, you can compare the effects of market volatilities on 3iQ Bitcoin and IShares SP 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3iQ Bitcoin and IShares SP.
Diversification Opportunities for 3iQ Bitcoin and IShares SP
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 3iQ and IShares is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 3iQ Bitcoin ETF and iShares SP Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP Small 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 IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP Small has no effect on the direction of 3iQ Bitcoin i.e., 3iQ Bitcoin and IShares SP go up and down completely randomly.
Pair Corralation between 3iQ Bitcoin and IShares SP
Assuming the 90 days trading horizon 3iQ Bitcoin ETF is expected to generate 2.6 times more return on investment than IShares SP. However, 3iQ Bitcoin is 2.6 times more volatile than iShares SP Small Cap. It trades about 0.14 of its potential returns per unit of risk. iShares SP Small Cap is currently generating about 0.06 per unit of risk. If you would invest 576.00 in 3iQ Bitcoin ETF on September 12, 2024 and sell it today you would earn a total of 1,596 from holding 3iQ Bitcoin ETF or generate 277.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
3iQ Bitcoin ETF vs. iShares SP Small Cap
Performance |
| Timeline |
| 3iQ Bitcoin ETF |
| iShares SP Small |
3iQ Bitcoin and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3iQ Bitcoin and IShares SP
The main advantage of trading using opposite 3iQ Bitcoin and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3iQ Bitcoin position performs unexpectedly, IShares SP 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 SP will offset losses from the drop in IShares SP's long position.| 3iQ Bitcoin vs. Purpose Bitcoin CAD | 3iQ Bitcoin vs. BMO Aggregate Bond | 3iQ Bitcoin vs. iShares Canadian HYBrid | 3iQ Bitcoin vs. Brompton European Dividend |
| IShares SP vs. iShares SP Small Cap | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares Core SP |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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