Correlation Between Valkyrie Bitcoin and Bitwise Crypto
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and Bitwise 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 Valkyrie Bitcoin and Bitwise Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valkyrie Bitcoin Miners and Bitwise Crypto Industry, you can compare the effects of market volatilities on Valkyrie Bitcoin and Bitwise 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 Valkyrie Bitcoin with a short position of Bitwise Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and Bitwise Crypto.
Diversification Opportunities for Valkyrie Bitcoin and Bitwise Crypto
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Valkyrie and Bitwise is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Miners and Bitwise Crypto Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Crypto Industry and Valkyrie Bitcoin 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 Valkyrie Bitcoin Miners are associated (or correlated) with Bitwise Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Crypto Industry has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and Bitwise Crypto go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and Bitwise Crypto
Given the investment horizon of 90 days Valkyrie Bitcoin Miners is expected to generate 1.25 times more return on investment than Bitwise Crypto. However, Valkyrie Bitcoin is 1.25 times more volatile than Bitwise Crypto Industry. It trades about 0.08 of its potential returns per unit of risk. Bitwise Crypto Industry is currently generating about 0.1 per unit of risk. If you would invest 1,271 in Valkyrie Bitcoin Miners on September 4, 2024 and sell it today you would earn a total of 1,485 from holding Valkyrie Bitcoin Miners or generate 116.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valkyrie Bitcoin Miners vs. Bitwise Crypto Industry
Performance |
| Timeline |
| Valkyrie Bitcoin Miners |
| Bitwise Crypto Industry |
Valkyrie Bitcoin and Bitwise Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and Bitwise Crypto
The main advantage of trading using opposite Valkyrie Bitcoin and Bitwise Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, Bitwise 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 Bitwise Crypto will offset losses from the drop in Bitwise Crypto's long position.| Valkyrie Bitcoin vs. VanEck Digital Transformation | Valkyrie Bitcoin vs. Bitwise Crypto Industry | Valkyrie Bitcoin vs. Valkyrie Bitcoin Strategy | Valkyrie Bitcoin vs. Stronghold Digital Mining |
| Bitwise Crypto vs. Bitwise 10 Crypto | Bitwise Crypto vs. VanEck Digital Transformation | Bitwise Crypto vs. Global X Blockchain | Bitwise Crypto vs. First Trust Indxx |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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