Correlation Between Valkyrie Bitcoin and SmartETFs Asia
Can any of the company-specific risk be diversified away by investing in both Valkyrie Bitcoin and SmartETFs Asia 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 SmartETFs Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valkyrie Bitcoin Strategy and SmartETFs Asia Pacific, you can compare the effects of market volatilities on Valkyrie Bitcoin and SmartETFs Asia 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 SmartETFs Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and SmartETFs Asia.
Diversification Opportunities for Valkyrie Bitcoin and SmartETFs Asia
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valkyrie and SmartETFs is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Strategy and SmartETFs Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartETFs Asia Pacific 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 Strategy are associated (or correlated) with SmartETFs Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartETFs Asia Pacific has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and SmartETFs Asia go up and down completely randomly.
Pair Corralation between Valkyrie Bitcoin and SmartETFs Asia
Considering the 90-day investment horizon Valkyrie Bitcoin Strategy is expected to generate 4.41 times more return on investment than SmartETFs Asia. However, Valkyrie Bitcoin is 4.41 times more volatile than SmartETFs Asia Pacific. It trades about 0.13 of its potential returns per unit of risk. SmartETFs Asia Pacific is currently generating about 0.15 per unit of risk. If you would invest 1,401 in Valkyrie Bitcoin Strategy on June 11, 2025 and sell it today you would earn a total of 350.00 from holding Valkyrie Bitcoin Strategy or generate 24.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Valkyrie Bitcoin Strategy vs. SmartETFs Asia Pacific
Performance |
| Timeline |
| Valkyrie Bitcoin Strategy |
| SmartETFs Asia Pacific |
Valkyrie Bitcoin and SmartETFs Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valkyrie Bitcoin and SmartETFs Asia
The main advantage of trading using opposite Valkyrie Bitcoin and SmartETFs Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valkyrie Bitcoin position performs unexpectedly, SmartETFs Asia 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 SmartETFs Asia will offset losses from the drop in SmartETFs Asia's long position.| Valkyrie Bitcoin vs. ProShares Bitcoin Strategy | Valkyrie Bitcoin vs. Bitwise Crypto Industry | Valkyrie Bitcoin vs. Bitwise 10 Crypto | Valkyrie Bitcoin vs. Global X Blockchain |
| SmartETFs Asia vs. SmartETFs Dividend Builder | SmartETFs Asia vs. Anfield Dynamic Fixed | SmartETFs Asia vs. Anfield Universal Fixed | SmartETFs Asia vs. Aptus Drawdown Managed |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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