Correlation Between Bitwise Core and Intel

Can any of the company-specific risk be diversified away by investing in both Bitwise Core and Intel 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 Bitwise Core and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitwise Core Bitcoin and Intel, you can compare the effects of market volatilities on Bitwise Core and Intel 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 Bitwise Core with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Core and Intel.

Diversification Opportunities for Bitwise Core and Intel

-0.26

Correlation Coefficient

Bitwise Core  Intel

Very good diversification

The 3 months correlation between Bitwise and Intel is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Core Bitcoin and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Bitwise Core 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 Bitwise Core Bitcoin are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Bitwise Core i.e., Bitwise Core and Intel go up and down completely randomly.

Pair Corralation between Bitwise Core and Intel

Assuming the 90 days trading horizon Bitwise Core Bitcoin is expected to under-perform the Intel. But the etf apears to be less risky and, when comparing its historical volatility, Bitwise Core Bitcoin is 1.33 times less risky than Intel. The etf trades about -0.07 of its potential returns per unit of risk. The Intel is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,933  in Intel on December 24, 2024 and sell it today you would earn a total of  274.00  from holding Intel or generate 14.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bitwise Core Bitcoin  vs.  Intel

Bitwise Core Bitcoin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitwise Core Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Etf's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Intel

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Intel unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitwise Core and Intel

The main advantage of trading using opposite Bitwise Core and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Core position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.

The idea behind Bitwise Core Bitcoin and Intel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.