Correlation Between SPDR SP and Bitwise Ethereum
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Bitwise Ethereum 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 SPDR SP and Bitwise Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Bitwise Ethereum ETF, you can compare the effects of market volatilities on SPDR SP and Bitwise Ethereum 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 SPDR SP with a short position of Bitwise Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Bitwise Ethereum.
Diversification Opportunities for SPDR SP and Bitwise Ethereum
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and Bitwise is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Bitwise Ethereum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Ethereum ETF and SPDR SP 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 SPDR SP 500 are associated (or correlated) with Bitwise Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Ethereum ETF has no effect on the direction of SPDR SP i.e., SPDR SP and Bitwise Ethereum go up and down completely randomly.
Pair Corralation between SPDR SP and Bitwise Ethereum
Considering the 90-day investment horizon SPDR SP 500 is expected to generate 0.17 times more return on investment than Bitwise Ethereum. However, SPDR SP 500 is 5.84 times less risky than Bitwise Ethereum. It trades about 0.15 of its potential returns per unit of risk. Bitwise Ethereum ETF is currently generating about 0.01 per unit of risk. If you would invest 45,297 in SPDR SP 500 on August 27, 2024 and sell it today you would earn a total of 14,254 from holding SPDR SP 500 or generate 31.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 35.89% |
| Values | Daily Returns |
SPDR SP 500 vs. Bitwise Ethereum ETF
Performance |
| Timeline |
| SPDR SP 500 |
| Bitwise Ethereum ETF |
SPDR SP and Bitwise Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Bitwise Ethereum
The main advantage of trading using opposite SPDR SP and Bitwise Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Bitwise Ethereum 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 Ethereum will offset losses from the drop in Bitwise Ethereum's long position.| SPDR SP vs. FT Vest Equity | SPDR SP vs. Northern Lights | SPDR SP vs. Dimensional International High | SPDR SP vs. First Trust Exchange Traded |
| Bitwise Ethereum vs. ProShares Trust | Bitwise Ethereum vs. iShares Ethereum Trust | Bitwise Ethereum vs. ProShares Trust | Bitwise Ethereum 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |