Correlation Between 21Shares Ethereum and 21Shares Bitcoin
Specify exactly 2 symbols:
By analyzing existing cross correlation between 21Shares Ethereum Core and 21Shares Bitcoin ETP, you can compare the effects of market volatilities on 21Shares Ethereum and 21Shares Bitcoin 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 21Shares Ethereum with a short position of 21Shares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Ethereum and 21Shares Bitcoin.
Diversification Opportunities for 21Shares Ethereum and 21Shares Bitcoin
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 21Shares and 21Shares is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Ethereum Core and 21Shares Bitcoin ETP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Bitcoin ETP and 21Shares Ethereum 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 21Shares Ethereum Core are associated (or correlated) with 21Shares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Bitcoin ETP has no effect on the direction of 21Shares Ethereum i.e., 21Shares Ethereum and 21Shares Bitcoin go up and down completely randomly.
Pair Corralation between 21Shares Ethereum and 21Shares Bitcoin
Assuming the 90 days trading horizon 21Shares Ethereum is expected to generate 1.64 times less return on investment than 21Shares Bitcoin. In addition to that, 21Shares Ethereum is 1.27 times more volatile than 21Shares Bitcoin ETP. It trades about 0.12 of its total potential returns per unit of risk. 21Shares Bitcoin ETP is currently generating about 0.25 per unit of volatility. If you would invest 1,779 in 21Shares Bitcoin ETP on October 25, 2024 and sell it today you would earn a total of 1,055 from holding 21Shares Bitcoin ETP or generate 59.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Ethereum Core vs. 21Shares Bitcoin ETP
Performance |
| Timeline |
| 21Shares Ethereum Core |
| 21Shares Bitcoin ETP |
21Shares Ethereum and 21Shares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Ethereum and 21Shares Bitcoin
The main advantage of trading using opposite 21Shares Ethereum and 21Shares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Ethereum position performs unexpectedly, 21Shares Bitcoin 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 21Shares Bitcoin will offset losses from the drop in 21Shares Bitcoin's long position.| 21Shares Ethereum vs. 21Shares Polygon ETP | 21Shares Ethereum vs. 21Shares Tezos staking | 21Shares Ethereum vs. 21Shares Bitcoin ETP | 21Shares Ethereum vs. 21Shares Bytetree BOLD |
| 21Shares Bitcoin vs. 21Shares Polygon ETP | 21Shares Bitcoin vs. 21Shares Ethereum Core | 21Shares Bitcoin vs. 21Shares Tezos staking | 21Shares Bitcoin vs. 21Shares Bytetree BOLD |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |