Correlation Between Henderson Strategic and Bitwise 10
Can any of the company-specific risk be diversified away by investing in both Henderson Strategic 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 Henderson Strategic and Bitwise 10 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson Strategic Income and Bitwise 10 Crypto, you can compare the effects of market volatilities on Henderson Strategic 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 Henderson Strategic with a short position of Bitwise 10. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Strategic and Bitwise 10.
Diversification Opportunities for Henderson Strategic and Bitwise 10
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henderson and Bitwise is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Strategic Income 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 Henderson Strategic 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 Henderson Strategic Income 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 Henderson Strategic i.e., Henderson Strategic and Bitwise 10 go up and down completely randomly.
Pair Corralation between Henderson Strategic and Bitwise 10
Assuming the 90 days horizon Henderson Strategic is expected to generate 7.98 times less return on investment than Bitwise 10. But when comparing it to its historical volatility, Henderson Strategic Income is 19.07 times less risky than Bitwise 10. It trades about 0.29 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 6,340 in Bitwise 10 Crypto on June 7, 2025 and sell it today you would earn a total of 1,085 from holding Bitwise 10 Crypto or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henderson Strategic Income vs. Bitwise 10 Crypto
Performance |
| Timeline |
| Henderson Strategic |
| Bitwise 10 Crypto |
Henderson Strategic and Bitwise 10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Strategic and Bitwise 10
The main advantage of trading using opposite Henderson Strategic and Bitwise 10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson Strategic 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.| Henderson Strategic vs. Henderson European Focus | Henderson Strategic vs. Henderson Global Equity | Henderson Strategic vs. Janus Balanced Fund | Henderson Strategic vs. Janus Research Fund |
| Bitwise 10 vs. Grayscale Ethereum Trust | Bitwise 10 vs. Grayscale Bitcoin Cash | Bitwise 10 vs. Grayscale Bitcoin 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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