Correlation Between Valkyrie Bitcoin and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and Franklin Templeton 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 Franklin Templeton 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 Franklin Templeton ETF, you can compare the effects of market volatilities on Valkyrie Bitcoin and Franklin Templeton 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 Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and Franklin Templeton.
Diversification Opportunities for Valkyrie Bitcoin and Franklin Templeton
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valkyrie and Franklin is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Strategy and Franklin Templeton ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton ETF 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 Franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton ETF has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and Franklin Templeton go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and Franklin Templeton
Considering the 90-day investment horizon Valkyrie Bitcoin Strategy is expected to generate 11.99 times more return on investment than Franklin Templeton. However, Valkyrie Bitcoin is 11.99 times more volatile than Franklin Templeton ETF. It trades about 0.29 of its potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.05 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. Franklin Templeton ETF
Performance |
| Timeline |
| Valkyrie Bitcoin Strategy |
| Franklin Templeton ETF |
Valkyrie Bitcoin and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and Franklin Templeton
The main advantage of trading using opposite Valkyrie Bitcoin and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, Franklin Templeton 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 Franklin Templeton will offset losses from the drop in Franklin Templeton'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 |
| Franklin Templeton vs. iShares Agency Bond | Franklin Templeton vs. iShares GNMA Bond | Franklin Templeton vs. iShares JP Morgan | Franklin Templeton vs. iShares Aaa |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |