Correlation Between IPath Series and Fidelity Crypto
Can any of the company-specific risk be diversified away by investing in both IPath Series and Fidelity Crypto 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 IPath Series and Fidelity Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPath Series B and Fidelity Crypto Industry, you can compare the effects of market volatilities on IPath Series and Fidelity Crypto 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 IPath Series with a short position of Fidelity Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPath Series and Fidelity Crypto.
Diversification Opportunities for IPath Series and Fidelity Crypto
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IPath and Fidelity is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding iPath Series B and Fidelity Crypto Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Crypto Industry and IPath Series 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 iPath Series B are associated (or correlated) with Fidelity Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Crypto Industry has no effect on the direction of IPath Series i.e., IPath Series and Fidelity Crypto go up and down completely randomly.
Pair Corralation between IPath Series and Fidelity Crypto
Considering the 90-day investment horizon iPath Series B is expected to under-perform the Fidelity Crypto. In addition to that, IPath Series is 1.06 times more volatile than Fidelity Crypto Industry. It trades about -0.06 of its total potential returns per unit of risk. Fidelity Crypto Industry is currently generating about 0.08 per unit of volatility. If you would invest 1,193 in Fidelity Crypto Industry on August 26, 2024 and sell it today you would earn a total of 2,687 from holding Fidelity Crypto Industry or generate 225.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iPath Series B vs. Fidelity Crypto Industry
Performance |
| Timeline |
| iPath Series B |
| Fidelity Crypto Industry |
IPath Series and Fidelity Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPath Series and Fidelity Crypto
The main advantage of trading using opposite IPath Series and Fidelity Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPath Series position performs unexpectedly, Fidelity Crypto 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 Fidelity Crypto will offset losses from the drop in Fidelity Crypto's long position.| IPath Series vs. ProShares VIX Short Term | IPath Series vs. ProShares UltraShort Yen | IPath Series vs. iPath Series B |
| Fidelity Crypto vs. Grayscale Bitcoin Trust | Fidelity Crypto vs. Siren Nasdaq NexGen | Fidelity Crypto vs. Grayscale Bitcoin Mini | Fidelity Crypto vs. First Trust SkyBridge |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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