Correlation Between Main International and Bitwise Bitcoin
Can any of the company-specific risk be diversified away by investing in both Main International and Bitwise 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 Main International and Bitwise Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main International ETF and Bitwise Bitcoin ETF, you can compare the effects of market volatilities on Main International and Bitwise 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 Main International with a short position of Bitwise Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and Bitwise Bitcoin.
Diversification Opportunities for Main International and Bitwise Bitcoin
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Main and Bitwise is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and Bitwise Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Bitcoin ETF and Main International 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 Main International ETF are associated (or correlated) with Bitwise Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Bitcoin ETF has no effect on the direction of Main International i.e., Main International and Bitwise Bitcoin go up and down completely randomly.
Pair Corralation between Main International and Bitwise Bitcoin
Given the investment horizon of 90 days Main International is expected to generate 268.92 times less return on investment than Bitwise Bitcoin. But when comparing it to its historical volatility, Main International ETF is 3.87 times less risky than Bitwise Bitcoin. It trades about 0.0 of its potential returns per unit of risk. Bitwise Bitcoin ETF is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,685 in Bitwise Bitcoin ETF on August 29, 2024 and sell it today you would earn a total of 1,583 from holding Bitwise Bitcoin ETF or generate 42.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main International ETF vs. Bitwise Bitcoin ETF
Performance |
| Timeline |
| Main International ETF |
| Bitwise Bitcoin ETF |
Main International and Bitwise Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main International and Bitwise Bitcoin
The main advantage of trading using opposite Main International and Bitwise Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, Bitwise 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 Bitwise Bitcoin will offset losses from the drop in Bitwise Bitcoin's long position.| Main International vs. ABIVAX Socit Anonyme | Main International vs. HUMANA INC | Main International vs. SCOR PK | Main International vs. Aquagold International |
| Bitwise Bitcoin vs. ProShares Trust | Bitwise Bitcoin vs. iShares Ethereum Trust | Bitwise Bitcoin vs. ProShares Trust | Bitwise Bitcoin vs. Grayscale Ethereum Trust |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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