Correlation Between Valkyrie Bitcoin and IShares Core
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and IShares Core 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 IShares Core 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 iShares Core 10, you can compare the effects of market volatilities on Valkyrie Bitcoin and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and IShares Core.
Diversification Opportunities for Valkyrie Bitcoin and IShares Core
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valkyrie and IShares is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Miners and iShares Core 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core 10 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core 10 has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and IShares Core go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and IShares Core
Given the investment horizon of 90 days Valkyrie Bitcoin Miners is expected to generate 7.65 times more return on investment than IShares Core. However, Valkyrie Bitcoin is 7.65 times more volatile than iShares Core 10. It trades about 0.09 of its potential returns per unit of risk. iShares Core 10 is currently generating about 0.04 per unit of risk. If you would invest 1,115 in Valkyrie Bitcoin Miners on August 24, 2024 and sell it today you would earn a total of 1,464 from holding Valkyrie Bitcoin Miners or generate 131.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Valkyrie Bitcoin Miners vs. iShares Core 10
Performance |
| Timeline |
| Valkyrie Bitcoin Miners |
| iShares Core 10 |
Valkyrie Bitcoin and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and IShares Core
The main advantage of trading using opposite Valkyrie Bitcoin and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core'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 |
| IShares Core vs. iShares Core 1 5 | IShares Core vs. iShares Agency Bond | IShares Core vs. iShares Intermediate GovernmentCredit | IShares Core vs. iShares GNMA Bond |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |