Correlation Between Intel and Bitwise Ethereum
Can any of the company-specific risk be diversified away by investing in both Intel and Bitwise Ethereum 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 Intel and Bitwise Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Bitwise Ethereum ETF, you can compare the effects of market volatilities on Intel and Bitwise Ethereum 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 Intel with a short position of Bitwise Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Bitwise Ethereum.
Diversification Opportunities for Intel and Bitwise Ethereum
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Bitwise is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Bitwise Ethereum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Ethereum ETF and Intel 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 Intel are associated (or correlated) with Bitwise Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Ethereum ETF has no effect on the direction of Intel i.e., Intel and Bitwise Ethereum go up and down completely randomly.
Pair Corralation between Intel and Bitwise Ethereum
Given the investment horizon of 90 days Intel is expected to generate 5.85 times less return on investment than Bitwise Ethereum. But when comparing it to its historical volatility, Intel is 1.6 times less risky than Bitwise Ethereum. It trades about 0.0 of its potential returns per unit of risk. Bitwise Ethereum ETF is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,485 in Bitwise Ethereum ETF on August 23, 2024 and sell it today you would lose (75.00) from holding Bitwise Ethereum ETF or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 17.54% |
| Values | Daily Returns |
Intel vs. Bitwise Ethereum ETF
Performance |
| Timeline |
| Intel |
| Bitwise Ethereum ETF |
Intel and Bitwise Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Bitwise Ethereum
The main advantage of trading using opposite Intel and Bitwise Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Bitwise Ethereum 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 Bitwise Ethereum will offset losses from the drop in Bitwise Ethereum's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Bitwise Ethereum vs. ProShares Bitcoin Strategy | Bitwise Ethereum vs. Bitwise 10 Crypto | Bitwise Ethereum vs. Global X Blockchain |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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