Correlation Between Valkyrie Bitcoin and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and ProShares Ultra 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 ProShares Ultra 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 ProShares Ultra MSCI, you can compare the effects of market volatilities on Valkyrie Bitcoin and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and ProShares Ultra.
Diversification Opportunities for Valkyrie Bitcoin and ProShares Ultra
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valkyrie and ProShares is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Miners and ProShares Ultra MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra MSCI 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra MSCI has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and ProShares Ultra go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and ProShares Ultra
Given the investment horizon of 90 days Valkyrie Bitcoin Miners is expected to generate 1.88 times more return on investment than ProShares Ultra. However, Valkyrie Bitcoin is 1.88 times more volatile than ProShares Ultra MSCI. It trades about 0.1 of its potential returns per unit of risk. ProShares Ultra MSCI is currently generating about -0.06 per unit of risk. If you would invest 1,862 in Valkyrie Bitcoin Miners on September 3, 2024 and sell it today you would earn a total of 1,052 from holding Valkyrie Bitcoin Miners or generate 56.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valkyrie Bitcoin Miners vs. ProShares Ultra MSCI
Performance |
| Timeline |
| Valkyrie Bitcoin Miners |
| ProShares Ultra MSCI |
Valkyrie Bitcoin and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and ProShares Ultra
The main advantage of trading using opposite Valkyrie Bitcoin and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra'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 |
| ProShares Ultra vs. ProShares Ultra SP500 | ProShares Ultra vs. Direxion Daily SP500 | ProShares Ultra vs. ProShares Ultra QQQ | ProShares Ultra vs. Direxion Daily SP |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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