Correlation Between Bitcoin ETF and Harvest Premium
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and Harvest Premium 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 Harvest Premium 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 Harvest Premium Yield, you can compare the effects of market volatilities on Bitcoin ETF and Harvest Premium 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 Harvest Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and Harvest Premium.
Diversification Opportunities for Bitcoin ETF and Harvest Premium
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and Harvest is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and Harvest Premium Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Premium Yield 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 Harvest Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Premium Yield has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and Harvest Premium go up and down completely randomly.
Pair Corralation between Bitcoin ETF and Harvest Premium
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 4.63 times more return on investment than Harvest Premium. However, Bitcoin ETF is 4.63 times more volatile than Harvest Premium Yield. It trades about 0.45 of its potential returns per unit of risk. Harvest Premium Yield is currently generating about -0.06 per unit of risk. If you would invest 3,292 in Bitcoin ETF CAD on August 24, 2024 and sell it today you would earn a total of 1,625 from holding Bitcoin ETF CAD or generate 49.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin ETF CAD vs. Harvest Premium Yield
Performance |
| Timeline |
| Bitcoin ETF CAD |
| Harvest Premium Yield |
Bitcoin ETF and Harvest Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and Harvest Premium
The main advantage of trading using opposite Bitcoin ETF and Harvest Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, Harvest Premium 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 Harvest Premium will offset losses from the drop in Harvest Premium's long position.| Bitcoin ETF vs. 3iQ Bitcoin ETF | Bitcoin ETF vs. Purpose Bitcoin CAD | Bitcoin ETF vs. 3iQ CoinShares Ether | Bitcoin ETF vs. BetaPro Inverse Bitcoin |
| Harvest Premium vs. Harvest Balanced Income | Harvest Premium vs. Harvest Energy Leaders | Harvest Premium vs. Harvest Eli Lilly | Harvest Premium vs. Harvest Nvidia Enhanced |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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