Correlation Between Global X and 3iQ Bitcoin
Can any of the company-specific risk be diversified away by investing in both Global X and 3iQ 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 Global X and 3iQ Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Enhanced and 3iQ Bitcoin ETF, you can compare the effects of market volatilities on Global X and 3iQ 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 Global X with a short position of 3iQ Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and 3iQ Bitcoin.
Diversification Opportunities for Global X and 3iQ Bitcoin
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and 3iQ is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Global X Enhanced and 3iQ Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3iQ Bitcoin ETF and Global X 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 X Enhanced are associated (or correlated) with 3iQ Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3iQ Bitcoin ETF has no effect on the direction of Global X i.e., Global X and 3iQ Bitcoin go up and down completely randomly.
Pair Corralation between Global X and 3iQ Bitcoin
Assuming the 90 days trading horizon Global X Enhanced is expected to generate 0.6 times more return on investment than 3iQ Bitcoin. However, Global X Enhanced is 1.67 times less risky than 3iQ Bitcoin. It trades about 0.29 of its potential returns per unit of risk. 3iQ Bitcoin ETF is currently generating about 0.1 per unit of risk. If you would invest 2,594 in Global X Enhanced on October 25, 2024 and sell it today you would earn a total of 255.00 from holding Global X Enhanced or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Enhanced vs. 3iQ Bitcoin ETF
Performance |
| Timeline |
| Global X Enhanced |
| 3iQ Bitcoin ETF |
Global X and 3iQ Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and 3iQ Bitcoin
The main advantage of trading using opposite Global X and 3iQ Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, 3iQ 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 3iQ Bitcoin will offset losses from the drop in 3iQ Bitcoin's long position.| Global X vs. Global X Equal | Global X vs. Global X Enhanced | Global X vs. Global X Gold | Global X vs. Global X Canadian |
| 3iQ Bitcoin vs. 3iQ CoinShares Ether | 3iQ Bitcoin vs. NBI High Yield | 3iQ Bitcoin vs. NBI Unconstrained Fixed | 3iQ Bitcoin vs. Mackenzie Developed ex North |
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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