Correlation Between Hashdex Nasdaq and Volatility Shares
Can any of the company-specific risk be diversified away by investing in both Hashdex Nasdaq and Volatility Shares 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 Hashdex Nasdaq and Volatility Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hashdex Nasdaq Crypto and Volatility Shares Trust, you can compare the effects of market volatilities on Hashdex Nasdaq and Volatility Shares 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 Hashdex Nasdaq with a short position of Volatility Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hashdex Nasdaq and Volatility Shares.
Diversification Opportunities for Hashdex Nasdaq and Volatility Shares
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hashdex and Volatility is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hashdex Nasdaq Crypto and Volatility Shares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volatility Shares Trust and Hashdex Nasdaq 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 Hashdex Nasdaq Crypto are associated (or correlated) with Volatility Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volatility Shares Trust has no effect on the direction of Hashdex Nasdaq i.e., Hashdex Nasdaq and Volatility Shares go up and down completely randomly.
Pair Corralation between Hashdex Nasdaq and Volatility Shares
Given the investment horizon of 90 days Hashdex Nasdaq is expected to generate 1.91 times less return on investment than Volatility Shares. But when comparing it to its historical volatility, Hashdex Nasdaq Crypto is 3.78 times less risky than Volatility Shares. It trades about 0.1 of its potential returns per unit of risk. Volatility Shares Trust is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,783 in Volatility Shares Trust on March 25, 2025 and sell it today you would earn a total of 56.00 from holding Volatility Shares Trust or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hashdex Nasdaq Crypto vs. Volatility Shares Trust
Performance |
| Timeline |
| Hashdex Nasdaq Crypto |
| Volatility Shares Trust |
Hashdex Nasdaq and Volatility Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hashdex Nasdaq and Volatility Shares
The main advantage of trading using opposite Hashdex Nasdaq and Volatility Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hashdex Nasdaq position performs unexpectedly, Volatility Shares 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 Volatility Shares will offset losses from the drop in Volatility Shares' long position.| Hashdex Nasdaq vs. Grayscale Funds Trust | Hashdex Nasdaq vs. ProShares Trust | Hashdex Nasdaq vs. iShares Ethereum Trust | Hashdex Nasdaq vs. ProShares Trust |
| Volatility Shares vs. Grayscale Funds Trust | Volatility Shares vs. ProShares Trust | Volatility Shares vs. Hashdex Nasdaq Crypto | Volatility Shares 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |