Correlation Between Bitwise Ethereum and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both Bitwise Ethereum and ProShares Trust 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 Bitwise Ethereum and ProShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitwise Ethereum ETF and ProShares Trust, you can compare the effects of market volatilities on Bitwise Ethereum and ProShares Trust 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 Bitwise Ethereum with a short position of ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Ethereum and ProShares Trust.
Diversification Opportunities for Bitwise Ethereum and ProShares Trust
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitwise and ProShares is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Ethereum ETF and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Trust and Bitwise 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 Bitwise Ethereum ETF are associated (or correlated) with ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of Bitwise Ethereum i.e., Bitwise Ethereum and ProShares Trust go up and down completely randomly.
Pair Corralation between Bitwise Ethereum and ProShares Trust
Given the investment horizon of 90 days Bitwise Ethereum ETF is expected to generate 0.51 times more return on investment than ProShares Trust. However, Bitwise Ethereum ETF is 1.96 times less risky than ProShares Trust. It trades about 0.33 of its potential returns per unit of risk. ProShares Trust is currently generating about -0.36 per unit of risk. If you would invest 1,797 in Bitwise Ethereum ETF on August 27, 2024 and sell it today you would earn a total of 720.00 from holding Bitwise Ethereum ETF or generate 40.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Ethereum ETF vs. ProShares Trust
Performance |
| Timeline |
| Bitwise Ethereum ETF |
| ProShares Trust |
Bitwise Ethereum and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Ethereum and ProShares Trust
The main advantage of trading using opposite Bitwise Ethereum and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Ethereum position performs unexpectedly, ProShares Trust 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 ProShares Trust will offset losses from the drop in ProShares Trust's long position.| Bitwise Ethereum vs. Grayscale Bitcoin Trust | Bitwise Ethereum vs. Grayscale Bitcoin Mini | Bitwise Ethereum vs. First Trust SkyBridge |
| ProShares Trust vs. Blackrock Muniholdings Ny | ProShares Trust vs. MFS Investment Grade | ProShares Trust vs. Eaton Vance National | ProShares Trust vs. Invesco High Income |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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