Correlation Between Valkyrie Bitcoin and SPDR SSGA
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and SPDR SSGA 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 SPDR SSGA 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 SPDR SSGA Fixed, you can compare the effects of market volatilities on Valkyrie Bitcoin and SPDR SSGA 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 SPDR SSGA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and SPDR SSGA.
Diversification Opportunities for Valkyrie Bitcoin and SPDR SSGA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valkyrie and SPDR is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Strategy and SPDR SSGA Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SSGA Fixed 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 SPDR SSGA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SSGA Fixed has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and SPDR SSGA go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and SPDR SSGA
Considering the 90-day investment horizon Valkyrie Bitcoin Strategy is expected to generate 11.65 times more return on investment than SPDR SSGA. However, Valkyrie Bitcoin is 11.65 times more volatile than SPDR SSGA Fixed. It trades about 0.3 of its potential returns per unit of risk. SPDR SSGA Fixed is currently generating about 0.05 per unit of risk. If you would invest 1,759 in Valkyrie Bitcoin Strategy on August 30, 2024 and sell it today you would earn a total of 605.00 from holding Valkyrie Bitcoin Strategy or generate 34.39% 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. SPDR SSGA Fixed
Performance |
| Timeline |
| Valkyrie Bitcoin Strategy |
| SPDR SSGA Fixed |
Valkyrie Bitcoin and SPDR SSGA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and SPDR SSGA
The main advantage of trading using opposite Valkyrie Bitcoin and SPDR SSGA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, SPDR SSGA 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 SPDR SSGA will offset losses from the drop in SPDR SSGA'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 |
| SPDR SSGA vs. SPDR SSGA Sector | SPDR SSGA vs. SPDR DoubleLine Emerging | SPDR SSGA vs. SPDR DoubleLine Short | SPDR SSGA vs. SPDR SSgA Ultra |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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