Correlation Between Fidelity Natural and Bitwise 10
Can any of the company-specific risk be diversified away by investing in both Fidelity Natural and Bitwise 10 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 Fidelity Natural and Bitwise 10 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Natural Resources and Bitwise 10 Crypto, you can compare the effects of market volatilities on Fidelity Natural and Bitwise 10 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 Fidelity Natural with a short position of Bitwise 10. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Natural and Bitwise 10.
Diversification Opportunities for Fidelity Natural and Bitwise 10
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and Bitwise is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Natural Resources and Bitwise 10 Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise 10 Crypto and Fidelity Natural 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 Fidelity Natural Resources are associated (or correlated) with Bitwise 10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise 10 Crypto has no effect on the direction of Fidelity Natural i.e., Fidelity Natural and Bitwise 10 go up and down completely randomly.
Pair Corralation between Fidelity Natural and Bitwise 10
Assuming the 90 days horizon Fidelity Natural is expected to generate 2.45 times less return on investment than Bitwise 10. But when comparing it to its historical volatility, Fidelity Natural Resources is 2.85 times less risky than Bitwise 10. It trades about 0.13 of its potential returns per unit of risk. Bitwise 10 Crypto is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,529 in Bitwise 10 Crypto on June 11, 2025 and sell it today you would earn a total of 1,071 from holding Bitwise 10 Crypto or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Natural Resources vs. Bitwise 10 Crypto
Performance |
| Timeline |
| Fidelity Natural Res |
| Bitwise 10 Crypto |
Fidelity Natural and Bitwise 10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Natural and Bitwise 10
The main advantage of trading using opposite Fidelity Natural and Bitwise 10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Natural position performs unexpectedly, Bitwise 10 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 Bitwise 10 will offset losses from the drop in Bitwise 10's long position.The idea behind Fidelity Natural Resources and Bitwise 10 Crypto pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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