Correlation Between IShares Core and 21Shares Bitwise
Can any of the company-specific risk be diversified away by investing in both IShares Core and 21Shares Bitwise 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 IShares Core and 21Shares Bitwise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and 21Shares Bitwise Select, you can compare the effects of market volatilities on IShares Core and 21Shares Bitwise 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 IShares Core with a short position of 21Shares Bitwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and 21Shares Bitwise.
Diversification Opportunities for IShares Core and 21Shares Bitwise
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and 21Shares is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and 21Shares Bitwise Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Bitwise Select and IShares Core 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 iShares Core SP are associated (or correlated) with 21Shares Bitwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Bitwise Select has no effect on the direction of IShares Core i.e., IShares Core and 21Shares Bitwise go up and down completely randomly.
Pair Corralation between IShares Core and 21Shares Bitwise
Assuming the 90 days trading horizon IShares Core is expected to generate 3.51 times less return on investment than 21Shares Bitwise. But when comparing it to its historical volatility, iShares Core SP is 4.34 times less risky than 21Shares Bitwise. It trades about 0.1 of its potential returns per unit of risk. 21Shares Bitwise Select is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,894 in 21Shares Bitwise Select on November 8, 2024 and sell it today you would earn a total of 1,428 from holding 21Shares Bitwise Select or generate 75.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
iShares Core SP vs. 21Shares Bitwise Select
Performance |
| Timeline |
| iShares Core SP |
| 21Shares Bitwise Select |
IShares Core and 21Shares Bitwise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and 21Shares Bitwise
The main advantage of trading using opposite IShares Core and 21Shares Bitwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, 21Shares Bitwise 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 21Shares Bitwise will offset losses from the drop in 21Shares Bitwise's long position.| IShares Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC |
| 21Shares Bitwise vs. 21Shares Polygon ETP | 21Shares Bitwise vs. 21Shares Ethereum Core | 21Shares Bitwise vs. 21Shares Tezos staking | 21Shares Bitwise vs. 21Shares Bitcoin ETP |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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