Correlation Between USCF Sustainable and Bitwise Funds
Can any of the company-specific risk be diversified away by investing in both USCF Sustainable and Bitwise Funds 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 USCF Sustainable and Bitwise Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USCF Sustainable Battery and Bitwise Funds Trust, you can compare the effects of market volatilities on USCF Sustainable and Bitwise Funds 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 USCF Sustainable with a short position of Bitwise Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF Sustainable and Bitwise Funds.
Diversification Opportunities for USCF Sustainable and Bitwise Funds
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between USCF and Bitwise is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding USCF Sustainable Battery and Bitwise Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Funds Trust and USCF Sustainable 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 USCF Sustainable Battery are associated (or correlated) with Bitwise Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Funds Trust has no effect on the direction of USCF Sustainable i.e., USCF Sustainable and Bitwise Funds go up and down completely randomly.
Pair Corralation between USCF Sustainable and Bitwise Funds
Considering the 90-day investment horizon USCF Sustainable Battery is expected to under-perform the Bitwise Funds. But the etf apears to be less risky and, when comparing its historical volatility, USCF Sustainable Battery is 2.53 times less risky than Bitwise Funds. The etf trades about -0.08 of its potential returns per unit of risk. The Bitwise Funds Trust is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 5,333 in Bitwise Funds Trust on August 30, 2024 and sell it today you would earn a total of 1,764 from holding Bitwise Funds Trust or generate 33.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USCF Sustainable Battery vs. Bitwise Funds Trust
Performance |
| Timeline |
| USCF Sustainable Battery |
| Bitwise Funds Trust |
USCF Sustainable and Bitwise Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF Sustainable and Bitwise Funds
The main advantage of trading using opposite USCF Sustainable and Bitwise Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF Sustainable position performs unexpectedly, Bitwise Funds 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 Bitwise Funds will offset losses from the drop in Bitwise Funds' long position.| USCF Sustainable vs. BondBloxx ETF Trust | USCF Sustainable vs. Bitwise Funds Trust | USCF Sustainable vs. Sprott Energy Transition | USCF Sustainable vs. Impact Shares YWCA |
| Bitwise Funds vs. Grayscale Bitcoin Trust | Bitwise Funds vs. ProShares Bitcoin Strategy | Bitwise Funds vs. Amplify Transformational Data | Bitwise Funds vs. Bitwise Crypto Industry |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |