Correlation Between IShares SPTSX and Bitcoin ETF
Can any of the company-specific risk be diversified away by investing in both IShares SPTSX and Bitcoin ETF 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 IShares SPTSX and Bitcoin ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SPTSX Capped and Bitcoin ETF CAD, you can compare the effects of market volatilities on IShares SPTSX and Bitcoin ETF 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 IShares SPTSX with a short position of Bitcoin ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SPTSX and Bitcoin ETF.
Diversification Opportunities for IShares SPTSX and Bitcoin ETF
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Bitcoin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares SPTSX Capped and Bitcoin ETF CAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin ETF CAD and IShares SPTSX 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 iShares SPTSX Capped are associated (or correlated) with Bitcoin ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin ETF CAD has no effect on the direction of IShares SPTSX i.e., IShares SPTSX and Bitcoin ETF go up and down completely randomly.
Pair Corralation between IShares SPTSX and Bitcoin ETF
Assuming the 90 days trading horizon IShares SPTSX is expected to generate 2.39 times less return on investment than Bitcoin ETF. But when comparing it to its historical volatility, iShares SPTSX Capped is 4.22 times less risky than Bitcoin ETF. It trades about 0.28 of its potential returns per unit of risk. Bitcoin ETF CAD is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Bitcoin ETF CAD on November 2, 2024 and sell it today you would earn a total of 417.00 from holding Bitcoin ETF CAD or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SPTSX Capped vs. Bitcoin ETF CAD
Performance |
| Timeline |
| iShares SPTSX Capped |
| Bitcoin ETF CAD |
IShares SPTSX and Bitcoin ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SPTSX and Bitcoin ETF
The main advantage of trading using opposite IShares SPTSX and Bitcoin ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SPTSX position performs unexpectedly, Bitcoin ETF 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 Bitcoin ETF will offset losses from the drop in Bitcoin ETF's long position.| IShares SPTSX vs. iShares SPTSX Capped | IShares SPTSX vs. iShares SPTSX Capped | IShares SPTSX vs. iShares SPTSX Global | IShares SPTSX vs. iShares SPTSX Capped |
| Bitcoin ETF vs. Bitcoin ETF | Bitcoin ETF vs. NBI High Yield | Bitcoin ETF vs. NBI Unconstrained Fixed | Bitcoin ETF vs. Mackenzie Developed ex North |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |