Correlation Between STKD Bitcoin and Valkyrie Bitcoin
Can any of the company-specific risk be diversified away by investing in both STKD Bitcoin and Valkyrie Bitcoin 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 STKD Bitcoin and Valkyrie Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STKD Bitcoin Gold and Valkyrie Bitcoin Strategy, you can compare the effects of market volatilities on STKD Bitcoin and Valkyrie Bitcoin 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 STKD Bitcoin with a short position of Valkyrie Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of STKD Bitcoin and Valkyrie Bitcoin.
Diversification Opportunities for STKD Bitcoin and Valkyrie Bitcoin
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between STKD and Valkyrie is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding STKD Bitcoin Gold and Valkyrie Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valkyrie Bitcoin Strategy and STKD 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 STKD Bitcoin Gold are associated (or correlated) with Valkyrie Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valkyrie Bitcoin Strategy has no effect on the direction of STKD Bitcoin i.e., STKD Bitcoin and Valkyrie Bitcoin go up and down completely randomly.
Pair Corralation between STKD Bitcoin and Valkyrie Bitcoin
Given the investment horizon of 90 days STKD Bitcoin Gold is expected to generate 1.19 times more return on investment than Valkyrie Bitcoin. However, STKD Bitcoin is 1.19 times more volatile than Valkyrie Bitcoin Strategy. It trades about 0.06 of its potential returns per unit of risk. Valkyrie Bitcoin Strategy is currently generating about 0.04 per unit of risk. If you would invest 2,800 in STKD Bitcoin Gold on October 8, 2024 and sell it today you would earn a total of 96.00 from holding STKD Bitcoin Gold or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STKD Bitcoin Gold vs. Valkyrie Bitcoin Strategy
Performance |
| Timeline |
| STKD Bitcoin Gold |
| Valkyrie Bitcoin Strategy |
STKD Bitcoin and Valkyrie Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STKD Bitcoin and Valkyrie Bitcoin
The main advantage of trading using opposite STKD Bitcoin and Valkyrie Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STKD Bitcoin position performs unexpectedly, Valkyrie Bitcoin 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 Valkyrie Bitcoin will offset losses from the drop in Valkyrie Bitcoin's long position.| STKD Bitcoin vs. Grayscale Bitcoin Trust | STKD Bitcoin vs. ProShares Bitcoin Strategy | STKD Bitcoin vs. Amplify Transformational Data | STKD Bitcoin vs. Siren Nasdaq NexGen |
| Valkyrie Bitcoin vs. ProShares Bitcoin Strategy | Valkyrie Bitcoin vs. Bitwise Crypto Industry | Valkyrie Bitcoin vs. Bitwise 10 Crypto | Valkyrie Bitcoin vs. Global X Blockchain |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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