Correlation Between Bitcoin ETF and Evolve Global
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and Evolve Global 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 Bitcoin ETF and Evolve Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin ETF CAD and Evolve Global Materials, you can compare the effects of market volatilities on Bitcoin ETF and Evolve Global 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 Bitcoin ETF with a short position of Evolve Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and Evolve Global.
Diversification Opportunities for Bitcoin ETF and Evolve Global
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitcoin and Evolve is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and Evolve Global Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Global Materials and Bitcoin ETF 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 Bitcoin ETF CAD are associated (or correlated) with Evolve Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Global Materials has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and Evolve Global go up and down completely randomly.
Pair Corralation between Bitcoin ETF and Evolve Global
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 4.14 times more return on investment than Evolve Global. However, Bitcoin ETF is 4.14 times more volatile than Evolve Global Materials. It trades about 0.22 of its potential returns per unit of risk. Evolve Global Materials is currently generating about -0.01 per unit of risk. If you would invest 4,470 in Bitcoin ETF CAD on September 13, 2024 and sell it today you would earn a total of 669.00 from holding Bitcoin ETF CAD or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin ETF CAD vs. Evolve Global Materials
Performance |
| Timeline |
| Bitcoin ETF CAD |
| Evolve Global Materials |
Bitcoin ETF and Evolve Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and Evolve Global
The main advantage of trading using opposite Bitcoin ETF and Evolve Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, Evolve Global 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 Evolve Global will offset losses from the drop in Evolve Global's long position.| Bitcoin ETF vs. 3iQ Bitcoin ETF | Bitcoin ETF vs. Purpose Bitcoin CAD | Bitcoin ETF vs. BMO Aggregate Bond | Bitcoin ETF vs. iShares Canadian HYBrid |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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