Correlation Between Forstrong Global and Bitcoin ETF
Can any of the company-specific risk be diversified away by investing in both Forstrong Global and Bitcoin ETF 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 Forstrong Global and Bitcoin ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forstrong Global Income and Bitcoin ETF CAD, you can compare the effects of market volatilities on Forstrong Global and Bitcoin ETF 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 Forstrong Global with a short position of Bitcoin ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forstrong Global and Bitcoin ETF.
Diversification Opportunities for Forstrong Global and Bitcoin ETF
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Forstrong and Bitcoin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Forstrong Global Income and Bitcoin ETF CAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin ETF CAD and Forstrong Global 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 Forstrong Global Income are associated (or correlated) with Bitcoin ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin ETF CAD has no effect on the direction of Forstrong Global i.e., Forstrong Global and Bitcoin ETF go up and down completely randomly.
Pair Corralation between Forstrong Global and Bitcoin ETF
Assuming the 90 days trading horizon Forstrong Global Income is expected to under-perform the Bitcoin ETF. But the etf apears to be less risky and, when comparing its historical volatility, Forstrong Global Income is 12.28 times less risky than Bitcoin ETF. The etf trades about -0.08 of its potential returns per unit of risk. The Bitcoin ETF CAD is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 3,482 in Bitcoin ETF CAD on September 1, 2024 and sell it today you would earn a total of 1,398 from holding Bitcoin ETF CAD or generate 40.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forstrong Global Income vs. Bitcoin ETF CAD
Performance |
| Timeline |
| Forstrong Global Income |
| Bitcoin ETF CAD |
Forstrong Global and Bitcoin ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forstrong Global and Bitcoin ETF
The main advantage of trading using opposite Forstrong Global and Bitcoin ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forstrong Global position performs unexpectedly, Bitcoin ETF 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 Bitcoin ETF will offset losses from the drop in Bitcoin ETF's long position.| Forstrong Global vs. iShares SPTSX 60 | Forstrong Global vs. iShares Core SP | Forstrong Global vs. iShares Core SPTSX | Forstrong Global vs. BMO Aggregate Bond |
| Bitcoin ETF vs. 3iQ Bitcoin ETF | Bitcoin ETF vs. 3iQ CoinShares Ether | Bitcoin ETF vs. Forstrong Global Income | Bitcoin ETF vs. BMO Aggregate Bond |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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