Correlation Between BetaPro SP and 3iQ Bitcoin
Can any of the company-specific risk be diversified away by investing in both BetaPro SP 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 BetaPro SP and 3iQ Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SP 500 and 3iQ Bitcoin ETF, you can compare the effects of market volatilities on BetaPro SP 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 BetaPro SP with a short position of 3iQ Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SP and 3iQ Bitcoin.
Diversification Opportunities for BetaPro SP and 3iQ Bitcoin
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BetaPro and 3iQ is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SP 500 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 BetaPro SP 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 BetaPro SP 500 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 BetaPro SP i.e., BetaPro SP and 3iQ Bitcoin go up and down completely randomly.
Pair Corralation between BetaPro SP and 3iQ Bitcoin
Assuming the 90 days trading horizon BetaPro SP 500 is expected to under-perform the 3iQ Bitcoin. But the etf apears to be less risky and, when comparing its historical volatility, BetaPro SP 500 is 1.04 times less risky than 3iQ Bitcoin. The etf trades about -0.18 of its potential returns per unit of risk. The 3iQ Bitcoin ETF is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,541 in 3iQ Bitcoin ETF on August 28, 2024 and sell it today you would earn a total of 569.00 from holding 3iQ Bitcoin ETF or generate 36.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro SP 500 vs. 3iQ Bitcoin ETF
Performance |
| Timeline |
| BetaPro SP 500 |
| 3iQ Bitcoin ETF |
BetaPro SP and 3iQ Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SP and 3iQ Bitcoin
The main advantage of trading using opposite BetaPro SP and 3iQ Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SP 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.| BetaPro SP vs. BetaPro NASDAQ 100 2x | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro SP 500 | BetaPro SP vs. BetaPro SP 500 |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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