Correlation Between IShares MSCI and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and STKD 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 IShares MSCI and STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI China and STKD Bitcoin Gold, you can compare the effects of market volatilities on IShares MSCI and STKD 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 IShares MSCI with a short position of STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and STKD Bitcoin.
Diversification Opportunities for IShares MSCI and STKD Bitcoin
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and STKD is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold and IShares MSCI 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 MSCI China are associated (or correlated) with STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of IShares MSCI i.e., IShares MSCI and STKD Bitcoin go up and down completely randomly.
Pair Corralation between IShares MSCI and STKD Bitcoin
Given the investment horizon of 90 days iShares MSCI China is expected to under-perform the STKD Bitcoin. But the etf apears to be less risky and, when comparing its historical volatility, iShares MSCI China is 1.66 times less risky than STKD Bitcoin. The etf trades about -0.03 of its potential returns per unit of risk. The STKD Bitcoin Gold is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,661 in STKD Bitcoin Gold on September 18, 2024 and sell it today you would earn a total of 404.00 from holding STKD Bitcoin Gold or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI China vs. STKD Bitcoin Gold
Performance |
| Timeline |
| iShares MSCI China |
| STKD Bitcoin Gold |
IShares MSCI and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and STKD Bitcoin
The main advantage of trading using opposite IShares MSCI and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, STKD 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.The idea behind iShares MSCI China and STKD Bitcoin Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| STKD Bitcoin vs. Freedom Day Dividend | STKD Bitcoin vs. Franklin Templeton ETF | STKD Bitcoin vs. iShares MSCI China | STKD Bitcoin vs. Tidal Trust II |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |