Correlation Between Main International and Bitwise Crypto
Can any of the company-specific risk be diversified away by investing in both Main International and Bitwise Crypto 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 Crypto 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 Crypto Industry, you can compare the effects of market volatilities on Main International and Bitwise Crypto 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 Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and Bitwise Crypto.
Diversification Opportunities for Main International and Bitwise Crypto
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Main and Bitwise is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and Bitwise Crypto Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Crypto Industry 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 Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Crypto Industry has no effect on the direction of Main International i.e., Main International and Bitwise Crypto go up and down completely randomly.
Pair Corralation between Main International and Bitwise Crypto
Given the investment horizon of 90 days Main International ETF is expected to under-perform the Bitwise Crypto. But the etf apears to be less risky and, when comparing its historical volatility, Main International ETF is 7.81 times less risky than Bitwise Crypto. The etf trades about -0.11 of its potential returns per unit of risk. The Bitwise Crypto Industry is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,654 in Bitwise Crypto Industry on August 30, 2024 and sell it today you would earn a total of 416.00 from holding Bitwise Crypto Industry or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main International ETF vs. Bitwise Crypto Industry
Performance |
| Timeline |
| Main International ETF |
| Bitwise Crypto Industry |
Main International and Bitwise Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main International and Bitwise Crypto
The main advantage of trading using opposite Main International and Bitwise Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, Bitwise Crypto 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 Crypto will offset losses from the drop in Bitwise Crypto'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 Crypto vs. Bitwise 10 Crypto | Bitwise Crypto vs. VanEck Digital Transformation | Bitwise Crypto vs. Global X Blockchain | Bitwise Crypto vs. First Trust Indxx |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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