Correlation Between Bitcoin ETF and TD Q
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and TD Q 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 TD Q 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 TD Q Global, you can compare the effects of market volatilities on Bitcoin ETF and TD Q 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 TD Q. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and TD Q.
Diversification Opportunities for Bitcoin ETF and TD Q
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitcoin and TQGM is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and TD Q Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Q Global 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 TD Q. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Q Global has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and TD Q go up and down completely randomly.
Pair Corralation between Bitcoin ETF and TD Q
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 7.81 times more return on investment than TD Q. However, Bitcoin ETF is 7.81 times more volatile than TD Q Global. It trades about 0.22 of its potential returns per unit of risk. TD Q Global is currently generating about 0.54 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 Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bitcoin ETF CAD vs. TD Q Global
Performance |
| Timeline |
| Bitcoin ETF CAD |
| TD Q Global |
Bitcoin ETF and TD Q Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and TD Q
The main advantage of trading using opposite Bitcoin ETF and TD Q positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, TD Q 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 TD Q will offset losses from the drop in TD Q'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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