Correlation Between 21Shares Bitcoin and IShares VII
Can any of the company-specific risk be diversified away by investing in both 21Shares Bitcoin and IShares VII 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 21Shares Bitcoin and IShares VII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Bitcoin Suisse and iShares VII PLC, you can compare the effects of market volatilities on 21Shares Bitcoin and IShares VII 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 21Shares Bitcoin with a short position of IShares VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Bitcoin and IShares VII.
Diversification Opportunities for 21Shares Bitcoin and IShares VII
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 21Shares and IShares is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Bitcoin Suisse and iShares VII PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII PLC and 21Shares 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 21Shares Bitcoin Suisse are associated (or correlated) with IShares VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII PLC has no effect on the direction of 21Shares Bitcoin i.e., 21Shares Bitcoin and IShares VII go up and down completely randomly.
Pair Corralation between 21Shares Bitcoin and IShares VII
Assuming the 90 days trading horizon 21Shares Bitcoin Suisse is expected to under-perform the IShares VII. In addition to that, 21Shares Bitcoin is 93.38 times more volatile than iShares VII PLC. It trades about -0.44 of its total potential returns per unit of risk. iShares VII PLC is currently generating about 0.12 per unit of volatility. If you would invest 11,566 in iShares VII PLC on August 28, 2025 and sell it today you would earn a total of 9.00 from holding iShares VII PLC or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
21Shares Bitcoin Suisse vs. iShares VII PLC
Performance |
| Timeline |
| 21Shares Bitcoin Suisse |
| iShares VII PLC |
21Shares Bitcoin and IShares VII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Bitcoin and IShares VII
The main advantage of trading using opposite 21Shares Bitcoin and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Bitcoin position performs unexpectedly, IShares VII 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 IShares VII will offset losses from the drop in IShares VII's long position.| 21Shares Bitcoin vs. 21Shares Polygon ETP | 21Shares Bitcoin vs. 21Shares Bitcoin Core | 21Shares Bitcoin vs. 21Shares Ethereum Core | 21Shares Bitcoin vs. 21Shares Tezos staking |
| IShares VII vs. iShares Emerging Asia | IShares VII vs. iShares MSCI Global | IShares VII vs. iShares VII PLC | IShares VII vs. iShares iBonds Dec |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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