Correlation Between Valkyrie Bitcoin and 2x Long
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and 2x Long 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 2x Long 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 2x Long VIX, you can compare the effects of market volatilities on Valkyrie Bitcoin and 2x Long 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 2x Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and 2x Long.
Diversification Opportunities for Valkyrie Bitcoin and 2x Long
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valkyrie and UVIX is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Miners and 2x Long VIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2x Long VIX 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 2x Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2x Long VIX has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and 2x Long go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and 2x Long
Given the investment horizon of 90 days Valkyrie Bitcoin Miners is expected to generate 0.58 times more return on investment than 2x Long. However, Valkyrie Bitcoin Miners is 1.73 times less risky than 2x Long. It trades about 0.08 of its potential returns per unit of risk. 2x Long VIX is currently generating about -0.03 per unit of risk. If you would invest 1,347 in Valkyrie Bitcoin Miners on September 2, 2024 and sell it today you would earn a total of 1,567 from holding Valkyrie Bitcoin Miners or generate 116.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valkyrie Bitcoin Miners vs. 2x Long VIX
Performance |
| Timeline |
| Valkyrie Bitcoin Miners |
| 2x Long VIX |
Valkyrie Bitcoin and 2x Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and 2x Long
The main advantage of trading using opposite Valkyrie Bitcoin and 2x Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, 2x Long 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 2x Long will offset losses from the drop in 2x Long'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 |
| 2x Long vs. 1x Short VIX | 2x Long vs. ProShares UltraShort Bloomberg | 2x Long vs. MicroSectors FANG Index | 2x Long vs. AXS TSLA Bear |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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