Correlation Between T Rex and Franklin Bitcoin
Can any of the company-specific risk be diversified away by investing in both T Rex and Franklin Bitcoin 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 T Rex and Franklin Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Inverse and Franklin Bitcoin ETF, you can compare the effects of market volatilities on T Rex and Franklin 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 T Rex with a short position of Franklin Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and Franklin Bitcoin.
Diversification Opportunities for T Rex and Franklin Bitcoin
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ETQ and Franklin is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Inverse and Franklin Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Bitcoin ETF and T Rex 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 T Rex 2X Inverse are associated (or correlated) with Franklin Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Bitcoin ETF has no effect on the direction of T Rex i.e., T Rex and Franklin Bitcoin go up and down completely randomly.
Pair Corralation between T Rex and Franklin Bitcoin
Considering the 90-day investment horizon T Rex 2X Inverse is expected to under-perform the Franklin Bitcoin. In addition to that, T Rex is 3.02 times more volatile than Franklin Bitcoin ETF. It trades about -0.16 of its total potential returns per unit of risk. Franklin Bitcoin ETF is currently generating about 0.24 per unit of volatility. If you would invest 5,046 in Franklin Bitcoin ETF on September 12, 2024 and sell it today you would earn a total of 829.50 from holding Franklin Bitcoin ETF or generate 16.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Rex 2X Inverse vs. Franklin Bitcoin ETF
Performance |
| Timeline |
| T Rex 2X |
| Franklin Bitcoin ETF |
T Rex and Franklin Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and Franklin Bitcoin
The main advantage of trading using opposite T Rex and Franklin Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, Franklin 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 Franklin Bitcoin will offset losses from the drop in Franklin Bitcoin's long position.| T Rex vs. ProShares Trust | T Rex vs. iShares Ethereum Trust | T Rex vs. ProShares Trust | T Rex vs. Grayscale Ethereum Trust |
| Franklin Bitcoin vs. ProShares Trust | Franklin Bitcoin vs. iShares Ethereum Trust | Franklin Bitcoin vs. ProShares Trust | Franklin Bitcoin vs. Grayscale Ethereum Trust |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |