Correlation Between IShares UK and 21Shares Bitcoin

Can any of the company-specific risk be diversified away by investing in both IShares UK and 21Shares 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 IShares UK and 21Shares Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares UK Property and 21Shares Bitcoin Suisse, you can compare the effects of market volatilities on IShares UK and 21Shares 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 IShares UK with a short position of 21Shares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares UK and 21Shares Bitcoin.

Diversification Opportunities for IShares UK and 21Shares Bitcoin

-0.25

Correlation Coefficient

IShares UK  21Shares Bitcoin

Very good diversification

The 3 months correlation between IShares and 21Shares is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding iShares UK Property and 21Shares Bitcoin Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Bitcoin Suisse and IShares UK 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 iShares UK Property are associated (or correlated) with 21Shares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Bitcoin Suisse has no effect on the direction of IShares UK i.e., IShares UK and 21Shares Bitcoin go up and down completely randomly.

Pair Corralation between IShares UK and 21Shares Bitcoin

Assuming the 90 days trading horizon iShares UK Property is expected to generate 0.28 times more return on investment than 21Shares Bitcoin. However, iShares UK Property is 3.52 times less risky than 21Shares Bitcoin. It trades about 0.03 of its potential returns per unit of risk. 21Shares Bitcoin Suisse is currently generating about -0.06 per unit of risk. If you would invest  450.00  in iShares UK Property on December 25, 2024 and sell it today you would earn a total of  7.00  from holding iShares UK Property or generate 1.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

iShares UK Property  vs.  21Shares Bitcoin Suisse

iShares UK Property

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iShares UK Property are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, IShares UK is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

21Shares Bitcoin Suisse

Risk-Adjusted Performance

Very Weak

Over the last 90 days 21Shares Bitcoin Suisse has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

Pair Trading with IShares UK and 21Shares Bitcoin

The main advantage of trading using opposite IShares UK and 21Shares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares UK position performs unexpectedly, 21Shares 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 21Shares Bitcoin will offset losses from the drop in 21Shares Bitcoin's long position.

The idea behind iShares UK Property and 21Shares Bitcoin Suisse 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.