Correlation Between 21Shares Bitcoin and IShares Core
Can any of the company-specific risk be diversified away by investing in both 21Shares Bitcoin and IShares Core 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 Core 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 Core SP, you can compare the effects of market volatilities on 21Shares Bitcoin and IShares Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Bitcoin and IShares Core.
Diversification Opportunities for 21Shares Bitcoin and IShares Core
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 21Shares and IShares is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Bitcoin Suisse and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of 21Shares Bitcoin i.e., 21Shares Bitcoin and IShares Core go up and down completely randomly.
Pair Corralation between 21Shares Bitcoin and IShares Core
Assuming the 90 days trading horizon 21Shares Bitcoin Suisse is expected to generate 2.92 times more return on investment than IShares Core. However, 21Shares Bitcoin is 2.92 times more volatile than iShares Core SP. It trades about 0.24 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.29 per unit of risk. If you would invest 2,400 in 21Shares Bitcoin Suisse on April 14, 2025 and sell it today you would earn a total of 974.00 from holding 21Shares Bitcoin Suisse or generate 40.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Bitcoin Suisse vs. iShares Core SP
Performance |
| Timeline |
| 21Shares Bitcoin Suisse |
| iShares Core SP |
21Shares Bitcoin and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Bitcoin and IShares Core
The main advantage of trading using opposite 21Shares Bitcoin and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Bitcoin position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| 21Shares Bitcoin vs. UBSFund Solutions MSCI | 21Shares Bitcoin vs. Vanguard SP 500 | 21Shares Bitcoin vs. iShares VII PLC | 21Shares Bitcoin vs. iShares Core SP |
| IShares Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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