Correlation Between STKD Bitcoin and First Trust
Can any of the company-specific risk be diversified away by investing in both STKD Bitcoin and First Trust 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 First Trust 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 First Trust Multi Asset, you can compare the effects of market volatilities on STKD Bitcoin and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of STKD Bitcoin and First Trust.
Diversification Opportunities for STKD Bitcoin and First Trust
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between STKD and First is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding STKD Bitcoin Gold and First Trust Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Multi 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Multi has no effect on the direction of STKD Bitcoin i.e., STKD Bitcoin and First Trust go up and down completely randomly.
Pair Corralation between STKD Bitcoin and First Trust
Given the investment horizon of 90 days STKD Bitcoin Gold is expected to generate 5.29 times more return on investment than First Trust. However, STKD Bitcoin is 5.29 times more volatile than First Trust Multi Asset. It trades about 0.15 of its potential returns per unit of risk. First Trust Multi Asset is currently generating about 0.16 per unit of risk. If you would invest 2,785 in STKD Bitcoin Gold on November 3, 2024 and sell it today you would earn a total of 238.00 from holding STKD Bitcoin Gold or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STKD Bitcoin Gold vs. First Trust Multi Asset
Performance |
| Timeline |
| STKD Bitcoin Gold |
| First Trust Multi |
STKD Bitcoin and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STKD Bitcoin and First Trust
The main advantage of trading using opposite STKD Bitcoin and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STKD Bitcoin position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| STKD Bitcoin vs. First Trust Multi Asset | STKD Bitcoin vs. Collaborative Investment Series | STKD Bitcoin vs. Northern Lights | STKD Bitcoin vs. Ocean Park International |
| First Trust vs. Global X SuperIncome | First Trust vs. iShares Morningstar Multi Asset | First Trust vs. Invesco CEF Income | First Trust vs. VanEck Fallen Angel |
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.
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