Correlation Between 3iQ CoinShares and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both 3iQ CoinShares and Fidelity Advantage 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 3iQ CoinShares and Fidelity Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3iQ CoinShares Ether and Fidelity Advantage Bitcoin, you can compare the effects of market volatilities on 3iQ CoinShares and Fidelity Advantage 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 3iQ CoinShares with a short position of Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3iQ CoinShares and Fidelity Advantage.
Diversification Opportunities for 3iQ CoinShares and Fidelity Advantage
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 3iQ and Fidelity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding 3iQ CoinShares Ether and Fidelity Advantage Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage and 3iQ CoinShares 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 3iQ CoinShares Ether are associated (or correlated) with Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage has no effect on the direction of 3iQ CoinShares i.e., 3iQ CoinShares and Fidelity Advantage go up and down completely randomly.
Pair Corralation between 3iQ CoinShares and Fidelity Advantage
Assuming the 90 days trading horizon 3iQ CoinShares Ether is expected to generate 1.26 times more return on investment than Fidelity Advantage. However, 3iQ CoinShares is 1.26 times more volatile than Fidelity Advantage Bitcoin. It trades about 0.26 of its potential returns per unit of risk. Fidelity Advantage Bitcoin is currently generating about 0.31 per unit of risk. If you would invest 1,368 in 3iQ CoinShares Ether on August 29, 2024 and sell it today you would earn a total of 458.00 from holding 3iQ CoinShares Ether or generate 33.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
3iQ CoinShares Ether vs. Fidelity Advantage Bitcoin
Performance |
| Timeline |
| 3iQ CoinShares Ether |
| Fidelity Advantage |
3iQ CoinShares and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3iQ CoinShares and Fidelity Advantage
The main advantage of trading using opposite 3iQ CoinShares and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3iQ CoinShares position performs unexpectedly, Fidelity Advantage 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 Fidelity Advantage will offset losses from the drop in Fidelity Advantage's long position.| 3iQ CoinShares vs. 3iQ Bitcoin ETF | 3iQ CoinShares vs. NBI High Yield | 3iQ CoinShares vs. NBI Unconstrained Fixed | 3iQ CoinShares vs. Mackenzie Developed ex North |
| Fidelity Advantage vs. 3iQ Bitcoin ETF | Fidelity Advantage vs. Purpose Bitcoin CAD | Fidelity Advantage vs. 3iQ CoinShares Ether | Fidelity Advantage vs. BetaPro Inverse Bitcoin |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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