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 Semiconductor, 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
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bitcoin and Global is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and Global X Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Semiconductor 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 Semiconductor 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 2.26 times more return on investment than Global X. However, Bitcoin ETF is 2.26 times more volatile than Global X Semiconductor. It trades about 0.22 of its potential returns per unit of risk. Global X Semiconductor is currently generating about -0.04 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. Global X Semiconductor
Performance |
| Timeline |
| Bitcoin ETF CAD |
| Global X Semiconductor |
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. 3iQ Bitcoin ETF | Bitcoin ETF vs. Purpose Bitcoin CAD | Bitcoin ETF vs. BMO Aggregate Bond | Bitcoin ETF vs. iShares Canadian HYBrid |
| Global X vs. First Trust AlphaDEX | Global X vs. FT AlphaDEX Industrials | Global X vs. BMO SPTSX Equal | Global X vs. First Trust Senior |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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