Correlation Between Valkyrie Bitcoin and VanEck Morningstar

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

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

Diversification Opportunities for Valkyrie Bitcoin and VanEck Morningstar

-0.84

Correlation Coefficient

Valkyrie Bitcoin  VanEck Morningstar

Pay attention - limited upside

The 3 months correlation between Valkyrie and VanEck is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Miners and VanEck Morningstar Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Morningstar and Valkyrie Bitcoin 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 Valkyrie Bitcoin Miners are associated (or correlated) with VanEck Morningstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Morningstar has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and VanEck Morningstar go up and down completely randomly.

Pair Corralation between Valkyrie Bitcoin and VanEck Morningstar

Given the investment horizon of 90 days Valkyrie Bitcoin Miners is expected to under-perform the VanEck Morningstar. In addition to that, Valkyrie Bitcoin is 5.0 times more volatile than VanEck Morningstar International. It trades about -0.12 of its total potential returns per unit of risk. VanEck Morningstar International is currently generating about 0.16 per unit of volatility. If you would invest  3,026  in VanEck Morningstar International on December 29, 2024 and sell it today you would earn a total of  327.00  from holding VanEck Morningstar International or generate 10.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Valkyrie Bitcoin Miners  vs.  VanEck Morningstar Internation

Valkyrie Bitcoin Miners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Valkyrie Bitcoin Miners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

VanEck Morningstar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Morningstar International are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, VanEck Morningstar may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Valkyrie Bitcoin and VanEck Morningstar

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

The idea behind Valkyrie Bitcoin Miners and VanEck Morningstar 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.