Correlation Between Bitcoin ETF and CI Yield
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and CI Yield 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 CI Yield 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 CI Yield Enhanced, you can compare the effects of market volatilities on Bitcoin ETF and CI Yield 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 CI Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and CI Yield.
Diversification Opportunities for Bitcoin ETF and CI Yield
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitcoin and CAGG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and CI Yield Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Yield Enhanced 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 CI Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Yield Enhanced has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and CI Yield go up and down completely randomly.
Pair Corralation between Bitcoin ETF and CI Yield
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 12.43 times more return on investment than CI Yield. However, Bitcoin ETF is 12.43 times more volatile than CI Yield Enhanced. It trades about 0.38 of its potential returns per unit of risk. CI Yield Enhanced is currently generating about 0.07 per unit of risk. If you would invest 3,482 in Bitcoin ETF CAD on September 1, 2024 and sell it today you would earn a total of 1,398 from holding Bitcoin ETF CAD or generate 40.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bitcoin ETF CAD vs. CI Yield Enhanced
Performance |
| Timeline |
| Bitcoin ETF CAD |
| CI Yield Enhanced |
Bitcoin ETF and CI Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and CI Yield
The main advantage of trading using opposite Bitcoin ETF and CI Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, CI Yield 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 CI Yield will offset losses from the drop in CI Yield's long position.| Bitcoin ETF vs. 3iQ Bitcoin ETF | Bitcoin ETF vs. 3iQ CoinShares Ether | Bitcoin ETF vs. Forstrong Global Income | Bitcoin ETF vs. BMO Aggregate Bond |
| CI Yield vs. NBI High Yield | CI Yield vs. NBI Unconstrained Fixed | CI Yield vs. Mackenzie Developed ex North | CI Yield vs. BMO Short Term Bond |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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