Correlation Between Bitcoin ETF and CIBC Qx

Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF 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 Bitcoin ETF and CIBC Qx 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 CIBC Qx International, you can compare the effects of market volatilities on Bitcoin ETF 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 Bitcoin ETF with a short position of CIBC Qx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and CIBC Qx.

Diversification Opportunities for Bitcoin ETF and CIBC Qx

-0.42

Correlation Coefficient

Bitcoin ETF  CIBC Qx

Very good diversification

The 3 months correlation between Bitcoin and CIBC is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD 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 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 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 Bitcoin ETF i.e., Bitcoin ETF and CIBC Qx go up and down completely randomly.

Pair Corralation between Bitcoin ETF and CIBC Qx

Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 2.11 times more return on investment than CIBC Qx. However, Bitcoin ETF is 2.11 times more volatile than CIBC Qx International. It trades about 0.22 of its potential returns per unit of risk. CIBC Qx International is currently generating about -0.15 per unit of risk. If you would invest  3,352  in Bitcoin ETF CAD on October 21, 2024 and sell it today you would earn a total of  2,048  from holding Bitcoin ETF CAD or generate 61.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Bitcoin ETF CAD  vs.  CIBC Qx International

Bitcoin ETF CAD

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin ETF CAD are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Bitcoin ETF displayed solid returns over the last few months and may actually be approaching a breakup point.

CIBC Qx International

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Etf's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with Bitcoin ETF and CIBC Qx

The main advantage of trading using opposite Bitcoin ETF and CIBC Qx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin ETF 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 Bitcoin ETF CAD 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.