Correlation Between Valkyrie Bitcoin and IndexIQ
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and IndexIQ 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 IndexIQ 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 IndexIQ, you can compare the effects of market volatilities on Valkyrie Bitcoin and IndexIQ 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 IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and IndexIQ.
Diversification Opportunities for Valkyrie Bitcoin and IndexIQ
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valkyrie and IndexIQ is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Miners and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ 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 IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and IndexIQ go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and IndexIQ
If you would invest 1,586 in Valkyrie Bitcoin Miners on September 2, 2024 and sell it today you would earn a total of 1,328 from holding Valkyrie Bitcoin Miners or generate 83.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 1.56% |
| Values | Daily Returns |
Valkyrie Bitcoin Miners vs. IndexIQ
Performance |
| Timeline |
| Valkyrie Bitcoin Miners |
| IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valkyrie Bitcoin and IndexIQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and IndexIQ
The main advantage of trading using opposite Valkyrie Bitcoin and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, IndexIQ 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 IndexIQ will offset losses from the drop in IndexIQ'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 |
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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