Correlation Between Fidelity Advantage and ProShares Bitcoin
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and ProShares 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 Fidelity Advantage and ProShares Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advantage Ether and ProShares Bitcoin Strategy, you can compare the effects of market volatilities on Fidelity Advantage and ProShares 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 Fidelity Advantage with a short position of ProShares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and ProShares Bitcoin.
Diversification Opportunities for Fidelity Advantage and ProShares Bitcoin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and ProShares is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Ether and ProShares Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Bitcoin and Fidelity Advantage 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 Fidelity Advantage Ether are associated (or correlated) with ProShares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Bitcoin has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and ProShares Bitcoin go up and down completely randomly.
Pair Corralation between Fidelity Advantage and ProShares Bitcoin
Given the investment horizon of 90 days Fidelity Advantage is expected to generate 5.7 times less return on investment than ProShares Bitcoin. In addition to that, Fidelity Advantage is 1.33 times more volatile than ProShares Bitcoin Strategy. It trades about 0.01 of its total potential returns per unit of risk. ProShares Bitcoin Strategy is currently generating about 0.11 per unit of volatility. If you would invest 518.00 in ProShares Bitcoin Strategy on August 23, 2024 and sell it today you would earn a total of 2,125 from holding ProShares Bitcoin Strategy or generate 410.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 17.54% |
| Values | Daily Returns |
Fidelity Advantage Ether vs. ProShares Bitcoin Strategy
Performance |
| Timeline |
| Fidelity Advantage Ether |
| ProShares Bitcoin |
Fidelity Advantage and ProShares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and ProShares Bitcoin
The main advantage of trading using opposite Fidelity Advantage and ProShares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, ProShares 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 ProShares Bitcoin will offset losses from the drop in ProShares Bitcoin's long position.| Fidelity Advantage vs. ProShares Bitcoin Strategy | Fidelity Advantage vs. Bitwise 10 Crypto | Fidelity Advantage vs. Global X Blockchain |
| ProShares Bitcoin vs. Grayscale Bitcoin Trust | ProShares Bitcoin vs. Grayscale Ethereum Trust | ProShares Bitcoin vs. Coinbase Global | ProShares Bitcoin vs. Valkyrie Bitcoin Strategy |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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