Correlation Between Vanguard Small and Bitwise Ethereum
Can any of the company-specific risk be diversified away by investing in both Vanguard Small 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 Vanguard Small and Bitwise Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Small Cap Index and Bitwise Ethereum ETF, you can compare the effects of market volatilities on Vanguard Small 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 Vanguard Small with a short position of Bitwise Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small and Bitwise Ethereum.
Diversification Opportunities for Vanguard Small and Bitwise Ethereum
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanguard and Bitwise is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Index 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 Vanguard Small 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 Vanguard Small Cap Index 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 Vanguard Small i.e., Vanguard Small and Bitwise Ethereum go up and down completely randomly.
Pair Corralation between Vanguard Small and Bitwise Ethereum
Allowing for the 90-day total investment horizon Vanguard Small Cap Index is expected to generate 0.25 times more return on investment than Bitwise Ethereum. However, Vanguard Small Cap Index is 3.99 times less risky than Bitwise Ethereum. It trades about 0.07 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 18,255 in Vanguard Small Cap Index on August 27, 2024 and sell it today you would earn a total of 7,518 from holding Vanguard Small Cap Index or generate 41.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 17.94% |
| Values | Daily Returns |
Vanguard Small Cap Index vs. Bitwise Ethereum ETF
Performance |
| Timeline |
| Vanguard Small Cap |
| Bitwise Ethereum ETF |
Vanguard Small and Bitwise Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Small and Bitwise Ethereum
The main advantage of trading using opposite Vanguard Small and Bitwise Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Small 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.| Vanguard Small vs. Vanguard Mid Cap Index | Vanguard Small vs. Vanguard Small Cap Value | Vanguard Small vs. Vanguard FTSE Emerging | Vanguard Small vs. Vanguard Large Cap Index |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world |