Correlation Between DAM and Valkyrie Bitcoin

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

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

Diversification Opportunities for DAM and Valkyrie Bitcoin

0.0

Correlation Coefficient

DAM  Valkyrie Bitcoin

Pay attention - limited upside

The 3 months correlation between DAM and Valkyrie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DAM and Valkyrie Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valkyrie Bitcoin Strategy and DAM 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 DAM are associated (or correlated) with Valkyrie Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valkyrie Bitcoin Strategy has no effect on the direction of DAM i.e., DAM and Valkyrie Bitcoin go up and down completely randomly.

Pair Corralation between DAM and Valkyrie Bitcoin

If you would invest (100.00) in DAM on December 28, 2024 and sell it today you would earn a total of  100.00  from holding DAM or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DAM  vs.  Valkyrie Bitcoin Strategy

DAM

Risk-Adjusted Performance

Very Weak

Over the last 90 days DAM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, DAM is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Valkyrie Bitcoin Strategy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Valkyrie Bitcoin Strategy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Pair Trading with DAM and Valkyrie Bitcoin

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

The idea behind DAM and Valkyrie Bitcoin Strategy 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.