Correlation Between Global Dividend and Bitcoin ETF
Can any of the company-specific risk be diversified away by investing in both Global Dividend 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 Global Dividend and Bitcoin ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Dividend Growth and Bitcoin ETF CAD, you can compare the effects of market volatilities on Global Dividend 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 Global Dividend with a short position of Bitcoin ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Dividend and Bitcoin ETF.
Diversification Opportunities for Global Dividend and Bitcoin ETF
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Bitcoin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Global Dividend Growth 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 Global Dividend 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 Global Dividend Growth 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 Global Dividend i.e., Global Dividend and Bitcoin ETF go up and down completely randomly.
Pair Corralation between Global Dividend and Bitcoin ETF
Assuming the 90 days trading horizon Global Dividend is expected to generate 4.34 times less return on investment than Bitcoin ETF. But when comparing it to its historical volatility, Global Dividend Growth is 2.7 times less risky than Bitcoin ETF. It trades about 0.14 of its potential returns per unit of risk. Bitcoin ETF CAD is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,470 in Bitcoin ETF CAD on September 13, 2024 and sell it today you would earn a total of 669.00 from holding Bitcoin ETF CAD or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Dividend Growth vs. Bitcoin ETF CAD
Performance |
| Timeline |
| Global Dividend Growth |
| Bitcoin ETF CAD |
Global Dividend and Bitcoin ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Dividend and Bitcoin ETF
The main advantage of trading using opposite Global Dividend and Bitcoin ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Dividend 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.| Global Dividend vs. E Split Corp | Global Dividend vs. Brompton Split Banc | Global Dividend vs. Life Banc Split | Global Dividend vs. Real Estate E Commerce |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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