Correlation Between IShares Bitcoin and Simplify Asset
Can any of the company-specific risk be diversified away by investing in both IShares Bitcoin and Simplify Asset 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 Simplify Asset 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 Simplify Asset Management, you can compare the effects of market volatilities on IShares Bitcoin and Simplify Asset 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 Simplify Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Bitcoin and Simplify Asset.
Diversification Opportunities for IShares Bitcoin and Simplify Asset
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Simplify is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding iShares Bitcoin Trust and Simplify Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Asset Management 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 Simplify Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Asset Management has no effect on the direction of IShares Bitcoin i.e., IShares Bitcoin and Simplify Asset go up and down completely randomly.
Pair Corralation between IShares Bitcoin and Simplify Asset
If you would invest 4,133 in iShares Bitcoin Trust on August 30, 2024 and sell it today you would earn a total of 1,370 from holding iShares Bitcoin Trust or generate 33.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
iShares Bitcoin Trust vs. Simplify Asset Management
Performance |
| Timeline |
| iShares Bitcoin Trust |
| Simplify Asset Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Bitcoin and Simplify Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Bitcoin and Simplify Asset
The main advantage of trading using opposite IShares Bitcoin and Simplify Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Bitcoin position performs unexpectedly, Simplify Asset 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 Simplify Asset will offset losses from the drop in Simplify Asset'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 |
| Simplify Asset vs. WisdomTree Trust | Simplify Asset vs. QRAFT AI Enhanced Large | Simplify Asset vs. Northern Lights | Simplify Asset vs. First Trust Exchange Traded |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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