Correlation Between ProShares Bitcoin and Swan Hedged
Can any of the company-specific risk be diversified away by investing in both ProShares Bitcoin and Swan Hedged 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 ProShares Bitcoin and Swan Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Bitcoin Strategy and Swan Hedged Equity, you can compare the effects of market volatilities on ProShares Bitcoin and Swan Hedged 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 ProShares Bitcoin with a short position of Swan Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Bitcoin and Swan Hedged.
Diversification Opportunities for ProShares Bitcoin and Swan Hedged
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ProShares and Swan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Bitcoin Strategy and Swan Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Hedged Equity and ProShares 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 ProShares Bitcoin Strategy are associated (or correlated) with Swan Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Hedged Equity has no effect on the direction of ProShares Bitcoin i.e., ProShares Bitcoin and Swan Hedged go up and down completely randomly.
Pair Corralation between ProShares Bitcoin and Swan Hedged
Given the investment horizon of 90 days ProShares Bitcoin Strategy is expected to generate 3.91 times more return on investment than Swan Hedged. However, ProShares Bitcoin is 3.91 times more volatile than Swan Hedged Equity. It trades about 0.1 of its potential returns per unit of risk. Swan Hedged Equity is currently generating about 0.07 per unit of risk. If you would invest 1,790 in ProShares Bitcoin Strategy on March 24, 2025 and sell it today you would earn a total of 277.00 from holding ProShares Bitcoin Strategy or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Bitcoin Strategy vs. Swan Hedged Equity
Performance |
| Timeline |
| ProShares Bitcoin |
| Swan Hedged Equity |
ProShares Bitcoin and Swan Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Bitcoin and Swan Hedged
The main advantage of trading using opposite ProShares Bitcoin and Swan Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Bitcoin position performs unexpectedly, Swan Hedged 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 Swan Hedged will offset losses from the drop in Swan Hedged's long position.| ProShares Bitcoin vs. Grayscale Bitcoin Trust | ProShares Bitcoin vs. Grayscale Ethereum Trust | ProShares Bitcoin vs. Coinbase Global | ProShares Bitcoin vs. Valkyrie Bitcoin Strategy |
| Swan Hedged vs. Amplify BlackSwan Growth | Swan Hedged vs. Invesco SP 500 | Swan Hedged vs. Simplify Exchange Traded | Swan Hedged vs. Simplify Equity PLUS |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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