Correlation Between Bitwise Funds and Axonic Strategic
Can any of the company-specific risk be diversified away by investing in both Bitwise Funds and Axonic Strategic 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 Bitwise Funds and Axonic Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitwise Funds Trust and Axonic Strategic Income, you can compare the effects of market volatilities on Bitwise Funds and Axonic Strategic 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 Bitwise Funds with a short position of Axonic Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Funds and Axonic Strategic.
Diversification Opportunities for Bitwise Funds and Axonic Strategic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitwise and Axonic is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Funds Trust and Axonic Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axonic Strategic Income and Bitwise Funds 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 Bitwise Funds Trust are associated (or correlated) with Axonic Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axonic Strategic Income has no effect on the direction of Bitwise Funds i.e., Bitwise Funds and Axonic Strategic go up and down completely randomly.
Pair Corralation between Bitwise Funds and Axonic Strategic
If you would invest 5,668 in Bitwise Funds Trust on November 2, 2024 and sell it today you would earn a total of 468.00 from holding Bitwise Funds Trust or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bitwise Funds Trust vs. Axonic Strategic Income
Performance |
| Timeline |
| Bitwise Funds Trust |
| Axonic Strategic Income |
Bitwise Funds and Axonic Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Funds and Axonic Strategic
The main advantage of trading using opposite Bitwise Funds and Axonic Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Funds position performs unexpectedly, Axonic Strategic 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 Axonic Strategic will offset losses from the drop in Axonic Strategic's long position.The idea behind Bitwise Funds Trust and Axonic Strategic Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Axonic Strategic vs. Axonic Strategic Income | Axonic Strategic vs. FT Vest Equity | Axonic Strategic vs. Zillow Group Class | Axonic Strategic vs. Northern Lights |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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