Correlation Between 3iQ Bitcoin and CIBC Qx

Can any of the company-specific risk be diversified away by investing in both 3iQ Bitcoin and CIBC Qx 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 3iQ Bitcoin and CIBC Qx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 3iQ Bitcoin ETF and CIBC Qx International, you can compare the effects of market volatilities on 3iQ Bitcoin and CIBC Qx 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 3iQ Bitcoin with a short position of CIBC Qx. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3iQ Bitcoin and CIBC Qx.

Diversification Opportunities for 3iQ Bitcoin and CIBC Qx

-0.71

Correlation Coefficient

3iQ Bitcoin  CIBC Qx

Pay attention - limited upside

The 3 months correlation between 3iQ and CIBC is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding 3iQ Bitcoin ETF and CIBC Qx International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIBC Qx International and 3iQ 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 3iQ Bitcoin ETF are associated (or correlated) with CIBC Qx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIBC Qx International has no effect on the direction of 3iQ Bitcoin i.e., 3iQ Bitcoin and CIBC Qx go up and down completely randomly.

Pair Corralation between 3iQ Bitcoin and CIBC Qx

Assuming the 90 days trading horizon 3iQ Bitcoin ETF is expected to under-perform the CIBC Qx. In addition to that, 3iQ Bitcoin is 1.63 times more volatile than CIBC Qx International. It trades about -0.05 of its total potential returns per unit of risk. CIBC Qx International is currently generating about -0.02 per unit of volatility. If you would invest  2,097  in CIBC Qx International on December 29, 2024 and sell it today you would lose (70.00) from holding CIBC Qx International or give up 3.34% of portfolio value over 90 days.

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

3iQ Bitcoin ETF  vs.  CIBC Qx International

3iQ Bitcoin ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days 3iQ Bitcoin ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

CIBC Qx International

Risk-Adjusted Performance

Very Weak

Over the last 90 days CIBC Qx International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CIBC Qx is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with 3iQ Bitcoin and CIBC Qx

The main advantage of trading using opposite 3iQ Bitcoin and CIBC Qx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3iQ Bitcoin position performs unexpectedly, CIBC Qx 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 CIBC Qx will offset losses from the drop in CIBC Qx's long position.

The idea behind 3iQ Bitcoin ETF and CIBC Qx International 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.