Correlation Between IShares Bitcoin and Etn Fr
Can any of the company-specific risk be diversified away by investing in both IShares Bitcoin and Etn Fr 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 IShares Bitcoin and Etn Fr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Bitcoin Trust and Etn Fr Colruyt, you can compare the effects of market volatilities on IShares Bitcoin and Etn Fr 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 IShares Bitcoin with a short position of Etn Fr. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Bitcoin and Etn Fr.
Diversification Opportunities for IShares Bitcoin and Etn Fr
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Etn is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding iShares Bitcoin Trust and Etn Fr Colruyt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etn Fr Colruyt and IShares Bitcoin 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 iShares Bitcoin Trust are associated (or correlated) with Etn Fr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etn Fr Colruyt has no effect on the direction of IShares Bitcoin i.e., IShares Bitcoin and Etn Fr go up and down completely randomly.
Pair Corralation between IShares Bitcoin and Etn Fr
If you would invest 3,967 in iShares Bitcoin Trust on August 29, 2024 and sell it today you would earn a total of 1,203 from holding iShares Bitcoin Trust or generate 30.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
iShares Bitcoin Trust vs. Etn Fr Colruyt
Performance |
| Timeline |
| iShares Bitcoin Trust |
| Etn Fr Colruyt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Bitcoin and Etn Fr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Bitcoin and Etn Fr
The main advantage of trading using opposite IShares Bitcoin and Etn Fr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Bitcoin position performs unexpectedly, Etn Fr 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 Etn Fr will offset losses from the drop in Etn Fr's long position.| IShares Bitcoin vs. ProShares Trust | IShares Bitcoin vs. iShares Ethereum Trust | IShares Bitcoin vs. ProShares Trust | IShares Bitcoin vs. Grayscale Ethereum Trust |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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