Correlation Between Bitcoin ETF and 3iQ Bitcoin
Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and 3iQ 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 Bitcoin ETF and 3iQ Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin ETF CAD and 3iQ Bitcoin ETF, you can compare the effects of market volatilities on Bitcoin ETF and 3iQ 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 Bitcoin ETF with a short position of 3iQ Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and 3iQ Bitcoin.
Diversification Opportunities for Bitcoin ETF and 3iQ Bitcoin
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Bitcoin and 3iQ is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and 3iQ Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3iQ Bitcoin ETF and Bitcoin ETF 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 Bitcoin ETF CAD are associated (or correlated) with 3iQ Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3iQ Bitcoin ETF has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and 3iQ Bitcoin go up and down completely randomly.
Pair Corralation between Bitcoin ETF and 3iQ Bitcoin
Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 1.01 times more return on investment than 3iQ Bitcoin. However, Bitcoin ETF is 1.01 times more volatile than 3iQ Bitcoin ETF. It trades about -0.12 of its potential returns per unit of risk. 3iQ Bitcoin ETF is currently generating about -0.12 per unit of risk. If you would invest 5,000 in Bitcoin ETF CAD on December 2, 2024 and sell it today you would lose (658.00) from holding Bitcoin ETF CAD or give up 13.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Bitcoin ETF CAD vs. 3iQ Bitcoin ETF
Performance |
Timeline |
Bitcoin ETF CAD |
3iQ Bitcoin ETF |
Bitcoin ETF and 3iQ Bitcoin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bitcoin ETF and 3iQ Bitcoin
The main advantage of trading using opposite Bitcoin ETF and 3iQ Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF position performs unexpectedly, 3iQ 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 3iQ Bitcoin will offset losses from the drop in 3iQ Bitcoin's long position.Bitcoin ETF vs. Bitcoin ETF | Bitcoin ETF vs. NBI High Yield | Bitcoin ETF vs. NBI Unconstrained Fixed | Bitcoin ETF vs. Mackenzie Developed ex North |
3iQ Bitcoin vs. 3iQ CoinShares Ether | 3iQ Bitcoin vs. NBI High Yield | 3iQ Bitcoin vs. NBI Unconstrained Fixed | 3iQ Bitcoin vs. Mackenzie Developed ex North |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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