Correlation Between Sprott and Bitwise Funds
Can any of the company-specific risk be diversified away by investing in both Sprott 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 Sprott and Bitwise Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott and Bitwise Funds Trust, you can compare the effects of market volatilities on Sprott 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 Sprott with a short position of Bitwise Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott and Bitwise Funds.
Diversification Opportunities for Sprott and Bitwise Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sprott and Bitwise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sprott 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 Sprott 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 Sprott 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 Sprott i.e., Sprott and Bitwise Funds go up and down completely randomly.
Pair Corralation between Sprott and Bitwise Funds
If you would invest 4,293 in Bitwise Funds Trust on August 31, 2024 and sell it today you would earn a total of 2,804 from holding Bitwise Funds Trust or generate 65.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.59% |
Values | Daily Returns |
Sprott vs. Bitwise Funds Trust
Performance |
Timeline |
Sprott |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bitwise Funds Trust |
Sprott and Bitwise Funds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sprott and Bitwise Funds
The main advantage of trading using opposite Sprott and Bitwise Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott 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.Sprott vs. Sprott Junior Gold | Sprott vs. Sprott Gold Miners | Sprott vs. Sprott Energy Transition | Sprott vs. iShares Gold Trust |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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