Correlation Between Valkyrie Bitcoin and Global X
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and Global X 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 Valkyrie Bitcoin and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valkyrie Bitcoin Strategy and Global X Blockchain, you can compare the effects of market volatilities on Valkyrie Bitcoin and Global X 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 Valkyrie Bitcoin with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and Global X.
Diversification Opportunities for Valkyrie Bitcoin and Global X
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valkyrie and Global is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Strategy and Global X Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Blockchain and Valkyrie 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 Valkyrie Bitcoin Strategy are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Blockchain has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and Global X go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and Global X
Considering the 90-day investment horizon Valkyrie Bitcoin Strategy is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, Valkyrie Bitcoin Strategy is 1.64 times less risky than Global X. The etf trades about -0.01 of its potential returns per unit of risk. The Global X Blockchain is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,335 in Global X Blockchain on November 3, 2024 and sell it today you would earn a total of 215.00 from holding Global X Blockchain or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Valkyrie Bitcoin Strategy vs. Global X Blockchain
Performance |
| Timeline |
| Valkyrie Bitcoin Strategy |
| Global X Blockchain |
Valkyrie Bitcoin and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and Global X
The main advantage of trading using opposite Valkyrie Bitcoin and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Valkyrie Bitcoin vs. ProShares Bitcoin Strategy | Valkyrie Bitcoin vs. Bitwise Crypto Industry | Valkyrie Bitcoin vs. Bitwise 10 Crypto | Valkyrie Bitcoin vs. Global X Blockchain |
| Global X vs. VanEck Digital Transformation | Global X vs. Bitwise Crypto Industry | Global X vs. First Trust Indxx | Global X vs. First Trust SkyBridge |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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