Correlation Between ProShares Trust and Valkyrie Bitcoin
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Valkyrie 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 ProShares Trust and Valkyrie Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Valkyrie Bitcoin Futures, you can compare the effects of market volatilities on ProShares Trust and Valkyrie 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 ProShares Trust with a short position of Valkyrie Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Valkyrie Bitcoin.
Diversification Opportunities for ProShares Trust and Valkyrie Bitcoin
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between ProShares and Valkyrie is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Valkyrie Bitcoin Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valkyrie Bitcoin Futures and ProShares Trust 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 Trust are associated (or correlated) with Valkyrie Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valkyrie Bitcoin Futures has no effect on the direction of ProShares Trust i.e., ProShares Trust and Valkyrie Bitcoin go up and down completely randomly.
Pair Corralation between ProShares Trust and Valkyrie Bitcoin
Given the investment horizon of 90 days ProShares Trust is expected to generate 1.09 times less return on investment than Valkyrie Bitcoin. In addition to that, ProShares Trust is 1.01 times more volatile than Valkyrie Bitcoin Futures. It trades about 0.04 of its total potential returns per unit of risk. Valkyrie Bitcoin Futures is currently generating about 0.05 per unit of volatility. If you would invest 5,675 in Valkyrie Bitcoin Futures on May 27, 2025 and sell it today you would earn a total of 422.00 from holding Valkyrie Bitcoin Futures or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. Valkyrie Bitcoin Futures
Performance |
| Timeline |
| ProShares Trust |
| Valkyrie Bitcoin Futures |
ProShares Trust and Valkyrie Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Valkyrie Bitcoin
The main advantage of trading using opposite ProShares Trust and Valkyrie Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Valkyrie 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 Valkyrie Bitcoin will offset losses from the drop in Valkyrie Bitcoin's long position.| ProShares Trust vs. Grayscale Funds Trust | ProShares Trust vs. ProShares Trust | ProShares Trust vs. Hashdex Nasdaq Crypto | ProShares Trust vs. iShares Ethereum Trust |
| Valkyrie Bitcoin vs. Grayscale Funds Trust | Valkyrie Bitcoin vs. ProShares Trust | Valkyrie Bitcoin vs. Hashdex Nasdaq Crypto | Valkyrie Bitcoin vs. iShares Ethereum Trust |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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