Correlation Between Bitcoin ETF and IShares Core
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and IShares 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 IShares 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 iShares Core SP, you can compare the effects of market volatilities on Bitcoin ETF and IShares 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and IShares Core.
Diversification Opportunities for Bitcoin ETF and IShares Core
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitcoin and IShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and IShares Core go up and down completely randomly.
Pair Corralation between Bitcoin ETF and IShares Core
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 4.22 times more return on investment than IShares Core. However, Bitcoin ETF is 4.22 times more volatile than iShares Core SP. It trades about 0.21 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.12 per unit of risk. If you would invest 2,816 in Bitcoin ETF CAD on November 2, 2024 and sell it today you would earn a total of 2,601 from holding Bitcoin ETF CAD or generate 92.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin ETF CAD vs. iShares Core SP
Performance |
| Timeline |
| Bitcoin ETF CAD |
| iShares Core SP |
Bitcoin ETF and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin ETF and IShares Core
The main advantage of trading using opposite Bitcoin ETF and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, IShares 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 IShares Core will offset losses from the drop in IShares Core'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 |
| IShares Core vs. iShares SPTSX 60 | IShares Core vs. iShares MSCI EAFE | IShares Core vs. iShares Core SPTSX | IShares Core vs. iShares SPTSX Capped |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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