Correlation Between Bitcoin ETF and GLOBAL X
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and GLOBAL X 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 GLOBAL X 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 GLOBAL X HIGH, you can compare the effects of market volatilities on Bitcoin ETF and GLOBAL X 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 GLOBAL X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and GLOBAL X.
Diversification Opportunities for Bitcoin ETF and GLOBAL X
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and GLOBAL is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and GLOBAL X HIGH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL X HIGH 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 GLOBAL X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL X HIGH has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and GLOBAL X go up and down completely randomly.
Pair Corralation between Bitcoin ETF and GLOBAL X
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 58.85 times more return on investment than GLOBAL X. However, Bitcoin ETF is 58.85 times more volatile than GLOBAL X HIGH. It trades about 0.11 of its potential returns per unit of risk. GLOBAL X HIGH is currently generating about 0.33 per unit of risk. If you would invest 1,140 in Bitcoin ETF CAD on October 15, 2024 and sell it today you would earn a total of 3,732 from holding Bitcoin ETF CAD or generate 327.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin ETF CAD vs. GLOBAL X HIGH
Performance |
| Timeline |
| Bitcoin ETF CAD |
| GLOBAL X HIGH |
Bitcoin ETF and GLOBAL X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and GLOBAL X
The main advantage of trading using opposite Bitcoin ETF and GLOBAL X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, GLOBAL X 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 GLOBAL X will offset losses from the drop in GLOBAL X's long position.| Bitcoin ETF vs. Bitcoin ETF | Bitcoin ETF vs. NBI High Yield | Bitcoin ETF vs. NBI Unconstrained Fixed | Bitcoin ETF vs. Mackenzie Developed ex North |
| GLOBAL X vs. Purpose High Interest | GLOBAL X vs. CI High Interest | GLOBAL X vs. Global X Cash | GLOBAL X vs. iShares Core Equity |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |