Correlation Between IShares Core and Bitwise Crypto
Can any of the company-specific risk be diversified away by investing in both IShares Core and Bitwise Crypto 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 IShares Core and Bitwise Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Bitwise Crypto Industry, you can compare the effects of market volatilities on IShares Core and Bitwise Crypto 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 IShares Core with a short position of Bitwise Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Bitwise Crypto.
Diversification Opportunities for IShares Core and Bitwise Crypto
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Bitwise is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Bitwise Crypto Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Crypto Industry and IShares Core 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 iShares Core SP are associated (or correlated) with Bitwise Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Crypto Industry has no effect on the direction of IShares Core i.e., IShares Core and Bitwise Crypto go up and down completely randomly.
Pair Corralation between IShares Core and Bitwise Crypto
Considering the 90-day investment horizon IShares Core is expected to generate 4.61 times less return on investment than Bitwise Crypto. But when comparing it to its historical volatility, iShares Core SP is 4.12 times less risky than Bitwise Crypto. It trades about 0.14 of its potential returns per unit of risk. Bitwise Crypto Industry is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,180 in Bitwise Crypto Industry on July 20, 2025 and sell it today you would earn a total of 623.00 from holding Bitwise Crypto Industry or generate 28.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. Bitwise Crypto Industry
Performance |
| Timeline |
| iShares Core SP |
| Bitwise Crypto Industry |
IShares Core and Bitwise Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Bitwise Crypto
The main advantage of trading using opposite IShares Core and Bitwise Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Bitwise Crypto 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 Crypto will offset losses from the drop in Bitwise Crypto's long position.| IShares Core vs. SPDR SP 500 | IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. Vanguard Total International |
| Bitwise Crypto vs. EA Series Trust | Bitwise Crypto vs. Harbor Corporate Culture | Bitwise Crypto vs. Dimensional ETF Trust | Bitwise Crypto vs. Goldman Sachs Hedge |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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