Correlation Between Bitcoin ETF and Mackenzie Core
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and Mackenzie Core 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 Mackenzie Core 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 Mackenzie Core Plus, you can compare the effects of market volatilities on Bitcoin ETF and Mackenzie Core 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 Mackenzie Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and Mackenzie Core.
Diversification Opportunities for Bitcoin ETF and Mackenzie Core
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bitcoin and Mackenzie is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and Mackenzie Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Core Plus 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 Mackenzie Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Core Plus has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and Mackenzie Core go up and down completely randomly.
Pair Corralation between Bitcoin ETF and Mackenzie Core
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 13.21 times more return on investment than Mackenzie Core. However, Bitcoin ETF is 13.21 times more volatile than Mackenzie Core Plus. It trades about 0.45 of its potential returns per unit of risk. Mackenzie Core Plus is currently generating about -0.09 per unit of risk. If you would invest 3,383 in Bitcoin ETF CAD on August 25, 2024 and sell it today you would earn a total of 1,587 from holding Bitcoin ETF CAD or generate 46.91% 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. Mackenzie Core Plus
Performance |
| Timeline |
| Bitcoin ETF CAD |
| Mackenzie Core Plus |
Bitcoin ETF and Mackenzie Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and Mackenzie Core
The main advantage of trading using opposite Bitcoin ETF and Mackenzie Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, Mackenzie Core 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 Mackenzie Core will offset losses from the drop in Mackenzie Core'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 |
| Mackenzie Core vs. Mackenzie Core Plus | Mackenzie Core vs. Mackenzie Floating Rate | Mackenzie Core vs. Mackenzie Unconstrained Bond | Mackenzie Core vs. Mackenzie Canadian Short |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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