Correlation Between Bitcoin ETF and BetaPro SP
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and BetaPro SP 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 BetaPro SP 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 BetaPro SP 500, you can compare the effects of market volatilities on Bitcoin ETF and BetaPro SP 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 BetaPro SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and BetaPro SP.
Diversification Opportunities for Bitcoin ETF and BetaPro SP
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and BetaPro is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and BetaPro SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SP 500 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 BetaPro SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SP 500 has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and BetaPro SP go up and down completely randomly.
Pair Corralation between Bitcoin ETF and BetaPro SP
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 4.67 times more return on investment than BetaPro SP. However, Bitcoin ETF is 4.67 times more volatile than BetaPro SP 500. It trades about 0.44 of its potential returns per unit of risk. BetaPro SP 500 is currently generating about -0.1 per unit of risk. If you would invest 3,457 in Bitcoin ETF CAD on August 27, 2024 and sell it today you would earn a total of 1,513 from holding Bitcoin ETF CAD or generate 43.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin ETF CAD vs. BetaPro SP 500
Performance |
| Timeline |
| Bitcoin ETF CAD |
| BetaPro SP 500 |
Bitcoin ETF and BetaPro SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and BetaPro SP
The main advantage of trading using opposite Bitcoin ETF and BetaPro SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, BetaPro SP 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 BetaPro SP will offset losses from the drop in BetaPro SP'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 |
| BetaPro SP vs. BetaPro SPTSX 60 | BetaPro SP vs. BetaPro NASDAQ 100 2x | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro Gold Bullion |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |