Correlation Between BetaPro SPTSX and 3iQ Bitcoin

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

By analyzing existing cross correlation between BetaPro SPTSX 60 and 3iQ Bitcoin ETF, you can compare the effects of market volatilities on BetaPro SPTSX 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 BetaPro SPTSX with a short position of 3iQ Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and 3iQ Bitcoin.

Diversification Opportunities for BetaPro SPTSX and 3iQ Bitcoin

0.0

Correlation Coefficient

BetaPro SPTSX  3iQ Bitcoin

Pay attention - limited upside

The 3 months correlation between BetaPro and 3iQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX 60 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 BetaPro SPTSX 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 BetaPro SPTSX 60 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 BetaPro SPTSX i.e., BetaPro SPTSX and 3iQ Bitcoin go up and down completely randomly.

Pair Corralation between BetaPro SPTSX and 3iQ Bitcoin

Assuming the 90 days trading horizon BetaPro SPTSX 60 is expected to generate 0.46 times more return on investment than 3iQ Bitcoin. However, BetaPro SPTSX 60 is 2.15 times less risky than 3iQ Bitcoin. It trades about 0.04 of its potential returns per unit of risk. 3iQ Bitcoin ETF is currently generating about -0.04 per unit of risk. If you would invest  2,218  in BetaPro SPTSX 60 on December 2, 2024 and sell it today you would earn a total of  63.00  from holding BetaPro SPTSX 60 or generate 2.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

BetaPro SPTSX 60  vs.  3iQ Bitcoin ETF

BetaPro SPTSX 60

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BetaPro SPTSX 60 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, BetaPro SPTSX is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

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.

Pair Trading with BetaPro SPTSX and 3iQ Bitcoin

The main advantage of trading using opposite BetaPro SPTSX and 3iQ Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX 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.

The idea behind BetaPro SPTSX 60 and 3iQ Bitcoin ETF 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.