Correlation Between Blockchain Technologies and BetaPro NASDAQ
Can any of the company-specific risk be diversified away by investing in both Blockchain Technologies and BetaPro NASDAQ 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 Blockchain Technologies and BetaPro NASDAQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockchain Technologies ETF and BetaPro NASDAQ 100 2x, you can compare the effects of market volatilities on Blockchain Technologies and BetaPro NASDAQ 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 Blockchain Technologies with a short position of BetaPro NASDAQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Technologies and BetaPro NASDAQ.
Diversification Opportunities for Blockchain Technologies and BetaPro NASDAQ
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blockchain and BetaPro is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Technologies ETF and BetaPro NASDAQ 100 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro NASDAQ 100 and Blockchain Technologies 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 Blockchain Technologies ETF are associated (or correlated) with BetaPro NASDAQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro NASDAQ 100 has no effect on the direction of Blockchain Technologies i.e., Blockchain Technologies and BetaPro NASDAQ go up and down completely randomly.
Pair Corralation between Blockchain Technologies and BetaPro NASDAQ
Assuming the 90 days trading horizon Blockchain Technologies ETF is expected to generate 2.02 times more return on investment than BetaPro NASDAQ. However, Blockchain Technologies is 2.02 times more volatile than BetaPro NASDAQ 100 2x. It trades about 0.18 of its potential returns per unit of risk. BetaPro NASDAQ 100 2x is currently generating about -0.08 per unit of risk. If you would invest 1,765 in Blockchain Technologies ETF on August 28, 2024 and sell it today you would earn a total of 291.00 from holding Blockchain Technologies ETF or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockchain Technologies ETF vs. BetaPro NASDAQ 100 2x
Performance |
| Timeline |
| Blockchain Technologies |
| BetaPro NASDAQ 100 |
Blockchain Technologies and BetaPro NASDAQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Technologies and BetaPro NASDAQ
The main advantage of trading using opposite Blockchain Technologies and BetaPro NASDAQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Technologies position performs unexpectedly, BetaPro NASDAQ 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 BetaPro NASDAQ will offset losses from the drop in BetaPro NASDAQ's long position.| Blockchain Technologies vs. BMO Equal Weight | Blockchain Technologies vs. BMO SPTSX Equal | Blockchain Technologies vs. BMO Equal Weight |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |