Correlation Between Valkyrie Bitcoin and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and IShares ESG 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 IShares ESG 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 iShares ESG Aggregate, you can compare the effects of market volatilities on Valkyrie Bitcoin and IShares ESG 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 IShares ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and IShares ESG.
Diversification Opportunities for Valkyrie Bitcoin and IShares ESG
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valkyrie and IShares is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Strategy and iShares ESG Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aggregate 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 IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aggregate has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and IShares ESG go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and IShares ESG
Considering the 90-day investment horizon Valkyrie Bitcoin Strategy is expected to generate 11.98 times more return on investment than IShares ESG. However, Valkyrie Bitcoin is 11.98 times more volatile than iShares ESG Aggregate. It trades about 0.29 of its potential returns per unit of risk. iShares ESG Aggregate is currently generating about 0.04 per unit of risk. If you would invest 1,675 in Valkyrie Bitcoin Strategy on August 29, 2024 and sell it today you would earn a total of 519.00 from holding Valkyrie Bitcoin Strategy or generate 30.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valkyrie Bitcoin Strategy vs. iShares ESG Aggregate
Performance |
| Timeline |
| Valkyrie Bitcoin Strategy |
| iShares ESG Aggregate |
Valkyrie Bitcoin and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and IShares ESG
The main advantage of trading using opposite Valkyrie Bitcoin and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, IShares ESG 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 ESG will offset losses from the drop in IShares ESG'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 |
| IShares ESG vs. iShares ESG 1 5 | IShares ESG vs. iShares ESG USD | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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