Correlation Between Valkyrie Bitcoin and GraniteShares XOUT
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and GraniteShares XOUT 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 GraniteShares XOUT 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 GraniteShares XOUT Large, you can compare the effects of market volatilities on Valkyrie Bitcoin and GraniteShares XOUT 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 GraniteShares XOUT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and GraniteShares XOUT.
Diversification Opportunities for Valkyrie Bitcoin and GraniteShares XOUT
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Valkyrie and GraniteShares is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Miners and GraniteShares XOUT Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares XOUT Large 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 GraniteShares XOUT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares XOUT Large has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and GraniteShares XOUT go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and GraniteShares XOUT
Given the investment horizon of 90 days Valkyrie Bitcoin Miners is expected to under-perform the GraniteShares XOUT. In addition to that, Valkyrie Bitcoin is 4.59 times more volatile than GraniteShares XOUT Large. It trades about -0.08 of its total potential returns per unit of risk. GraniteShares XOUT Large is currently generating about 0.02 per unit of volatility. If you would invest 5,700 in GraniteShares XOUT Large on November 30, 2024 and sell it today you would earn a total of 43.00 from holding GraniteShares XOUT Large or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valkyrie Bitcoin Miners vs. GraniteShares XOUT Large
Performance |
| Timeline |
| Valkyrie Bitcoin Miners |
| GraniteShares XOUT Large |
Valkyrie Bitcoin and GraniteShares XOUT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and GraniteShares XOUT
The main advantage of trading using opposite Valkyrie Bitcoin and GraniteShares XOUT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, GraniteShares XOUT 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 GraniteShares XOUT will offset losses from the drop in GraniteShares XOUT'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 |
| GraniteShares XOUT vs. GraniteShares HIPS High | GraniteShares XOUT vs. SoFi Social 50 | GraniteShares XOUT vs. Invesco SP 500 | GraniteShares XOUT vs. GraniteShares Bloomberg Commodity |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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