Correlation Between ETC Issuance and Global X
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By analyzing existing cross correlation between ETC Issuance ETHetc and Global X Bitcoin, you can compare the effects of market volatilities on ETC Issuance and Global X 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 ETC Issuance with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETC Issuance and Global X.
Diversification Opportunities for ETC Issuance and Global X
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ETC and Global is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ETC Issuance ETHetc and Global X Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Bitcoin and ETC Issuance 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 ETC Issuance ETHetc are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Bitcoin has no effect on the direction of ETC Issuance i.e., ETC Issuance and Global X go up and down completely randomly.
Pair Corralation between ETC Issuance and Global X
Assuming the 90 days trading horizon ETC Issuance is expected to generate 1.64 times less return on investment than Global X. In addition to that, ETC Issuance is 1.17 times more volatile than Global X Bitcoin. It trades about 0.06 of its total potential returns per unit of risk. Global X Bitcoin is currently generating about 0.12 per unit of volatility. If you would invest 1,994 in Global X Bitcoin on November 2, 2024 and sell it today you would earn a total of 7,671 from holding Global X Bitcoin or generate 384.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
ETC Issuance ETHetc vs. Global X Bitcoin
Performance |
| Timeline |
| ETC Issuance ETHetc |
| Global X Bitcoin |
ETC Issuance and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETC Issuance and Global X
The main advantage of trading using opposite ETC Issuance and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETC Issuance position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| ETC Issuance vs. ETC Group Physical | ETC Issuance vs. ETC EUWAX Gold | ETC Issuance vs. ETC Group Global | ETC Issuance vs. ETC Issuance ETHetc |
| Global X vs. Global X China | Global X vs. Global X Aave | Global X vs. Global X NASDAQ | Global X vs. Global X Cloud |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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