Correlation Between IShares Core and CoinShares Physical
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By analyzing existing cross correlation between iShares Core MSCI and CoinShares Physical Bitcoin, you can compare the effects of market volatilities on IShares Core and CoinShares Physical 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 IShares Core with a short position of CoinShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and CoinShares Physical.
Diversification Opportunities for IShares Core and CoinShares Physical
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and CoinShares is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI and CoinShares Physical Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares Physical and IShares Core 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 iShares Core MSCI are associated (or correlated) with CoinShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares Physical has no effect on the direction of IShares Core i.e., IShares Core and CoinShares Physical go up and down completely randomly.
Pair Corralation between IShares Core and CoinShares Physical
Assuming the 90 days trading horizon IShares Core is expected to generate 6.55 times less return on investment than CoinShares Physical. But when comparing it to its historical volatility, iShares Core MSCI is 3.18 times less risky than CoinShares Physical. It trades about 0.05 of its potential returns per unit of risk. CoinShares Physical Bitcoin is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,397 in CoinShares Physical Bitcoin on December 5, 2024 and sell it today you would earn a total of 6,123 from holding CoinShares Physical Bitcoin or generate 255.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.94% |
| Values | Daily Returns |
iShares Core MSCI vs. CoinShares Physical Bitcoin
Performance |
| Timeline |
| iShares Core MSCI |
| CoinShares Physical |
IShares Core and CoinShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and CoinShares Physical
The main advantage of trading using opposite IShares Core and CoinShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, CoinShares Physical 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 CoinShares Physical will offset losses from the drop in CoinShares Physical's long position.| IShares Core vs. iShares Corp Bond | ||
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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