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 Funds, 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
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Valkyrie and Global is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Strategy and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds 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 Funds 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. In addition to that, Valkyrie Bitcoin is 1.83 times more volatile than Global X Funds. It trades about -0.13 of its total potential returns per unit of risk. Global X Funds is currently generating about 0.08 per unit of volatility. If you would invest 3,377 in Global X Funds on November 9, 2024 and sell it today you would earn a total of 82.00 from holding Global X Funds or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valkyrie Bitcoin Strategy vs. Global X Funds
Performance |
| Timeline |
| Valkyrie Bitcoin Strategy |
| Global X Funds |
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. ProShares Trust | Global X vs. iShares Ethereum Trust | Global X vs. ProShares Trust | Global X vs. Grayscale Ethereum Trust |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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