Correlation Between Main International and Bitwise Funds
Can any of the company-specific risk be diversified away by investing in both Main International and Bitwise Funds 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 Funds 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 Funds Trust, you can compare the effects of market volatilities on Main International and Bitwise Funds 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 Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and Bitwise Funds.
Diversification Opportunities for Main International and Bitwise Funds
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Main and Bitwise is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and Bitwise Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Funds Trust 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 Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Funds Trust has no effect on the direction of Main International i.e., Main International and Bitwise Funds go up and down completely randomly.
Pair Corralation between Main International and Bitwise Funds
Given the investment horizon of 90 days Main International ETF is expected to under-perform the Bitwise Funds. But the etf apears to be less risky and, when comparing its historical volatility, Main International ETF is 5.43 times less risky than Bitwise Funds. The etf trades about -0.11 of its potential returns per unit of risk. The Bitwise Funds Trust is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 4,473 in Bitwise Funds Trust on August 30, 2024 and sell it today you would earn a total of 1,543 from holding Bitwise Funds Trust or generate 34.5% 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 Funds Trust
Performance |
| Timeline |
| Main International ETF |
| Bitwise Funds Trust |
Main International and Bitwise Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main International and Bitwise Funds
The main advantage of trading using opposite Main International and Bitwise Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, Bitwise Funds 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 Funds will offset losses from the drop in Bitwise Funds' long position.| Main International vs. ABIVAX Socit Anonyme | Main International vs. HUMANA INC | Main International vs. SCOR PK | Main International vs. Aquagold International |
| Bitwise Funds vs. ProShares Trust | Bitwise Funds vs. iShares Ethereum Trust | Bitwise Funds vs. ProShares Trust | Bitwise Funds 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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